Correlation Between Falabella and Enel Amricas
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By analyzing existing cross correlation between Falabella and Enel Amricas SA, you can compare the effects of market volatilities on Falabella and Enel Amricas 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 Falabella with a short position of Enel Amricas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Falabella and Enel Amricas.
Diversification Opportunities for Falabella and Enel Amricas
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Falabella and Enel is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Falabella and Enel Amricas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enel Amricas SA and Falabella 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 Falabella are associated (or correlated) with Enel Amricas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enel Amricas SA has no effect on the direction of Falabella i.e., Falabella and Enel Amricas go up and down completely randomly.
Pair Corralation between Falabella and Enel Amricas
Assuming the 90 days trading horizon Falabella is expected to generate 1.23 times more return on investment than Enel Amricas. However, Falabella is 1.23 times more volatile than Enel Amricas SA. It trades about 0.1 of its potential returns per unit of risk. Enel Amricas SA is currently generating about -0.03 per unit of risk. If you would invest 197,700 in Falabella on August 28, 2024 and sell it today you would earn a total of 138,800 from holding Falabella or generate 70.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Falabella vs. Enel Amricas SA
Performance |
| Timeline |
| Falabella |
| Enel Amricas SA |
Falabella and Enel Amricas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Falabella and Enel Amricas
The main advantage of trading using opposite Falabella and Enel Amricas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Falabella position performs unexpectedly, Enel Amricas 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 Enel Amricas will offset losses from the drop in Enel Amricas' long position.| Falabella vs. Cencosud | Falabella vs. Empresas Copec SA | Falabella vs. LATAM Airlines Group | Falabella vs. Sociedad Qumica y |
| Enel Amricas vs. Empresas Copec SA | Enel Amricas vs. Banco Santander Chile | Enel Amricas vs. Falabella | Enel Amricas vs. Cencosud |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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