Correlation Between Empresa Nacional and Electrolux
Can any of the company-specific risk be diversified away by investing in both Empresa Nacional and Electrolux at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Empresa Nacional and Electrolux into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Empresa Nacional de and Electrolux De Chile, you can compare the effects of market volatilities on Empresa Nacional and Electrolux and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Empresa Nacional with a short position of Electrolux. Check out your portfolio center. Please also check ongoing floating volatility patterns of Empresa Nacional and Electrolux.
Diversification Opportunities for Empresa Nacional and Electrolux
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Empresa and Electrolux is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Empresa Nacional de and Electrolux De Chile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electrolux De Chile and Empresa Nacional is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Empresa Nacional de are associated (or correlated) with Electrolux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electrolux De Chile has no effect on the direction of Empresa Nacional i.e., Empresa Nacional and Electrolux go up and down completely randomly.
Pair Corralation between Empresa Nacional and Electrolux
If you would invest 291,370 in Empresa Nacional de on September 1, 2024 and sell it today you would lose (530.00) from holding Empresa Nacional de or give up 0.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.82% |
| Values | Daily Returns |
Empresa Nacional de vs. Electrolux De Chile
Performance |
| Timeline |
| Empresa Nacional |
| Electrolux De Chile |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Empresa Nacional and Electrolux Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Empresa Nacional and Electrolux
The main advantage of trading using opposite Empresa Nacional and Electrolux positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Empresa Nacional position performs unexpectedly, Electrolux can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Electrolux will offset losses from the drop in Electrolux's long position.| Empresa Nacional vs. Cencosud | Empresa Nacional vs. Empresas Copec SA | Empresa Nacional vs. Falabella | Empresa Nacional vs. Empresas CMPC |
| Electrolux vs. Multiexport Foods SA | Electrolux vs. Banco de Credito | Electrolux vs. LATAM Airlines Group |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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