Correlation Between General Shopping and Energisa Mato
Can any of the company-specific risk be diversified away by investing in both General Shopping and Energisa Mato 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 General Shopping and Energisa Mato into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Shopping e and Energisa Mato Grosso, you can compare the effects of market volatilities on General Shopping and Energisa Mato 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 General Shopping with a short position of Energisa Mato. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Shopping and Energisa Mato.
Diversification Opportunities for General Shopping and Energisa Mato
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between General and Energisa is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding General Shopping e and Energisa Mato Grosso in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energisa Mato Grosso and General Shopping 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 General Shopping e are associated (or correlated) with Energisa Mato. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energisa Mato Grosso has no effect on the direction of General Shopping i.e., General Shopping and Energisa Mato go up and down completely randomly.
Pair Corralation between General Shopping and Energisa Mato
Assuming the 90 days trading horizon General Shopping e is expected to under-perform the Energisa Mato. But the stock apears to be less risky and, when comparing its historical volatility, General Shopping e is 1.03 times less risky than Energisa Mato. The stock trades about -0.11 of its potential returns per unit of risk. The Energisa Mato Grosso is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 6,600 in Energisa Mato Grosso on August 26, 2024 and sell it today you would earn a total of 1,890 from holding Energisa Mato Grosso or generate 28.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
General Shopping e vs. Energisa Mato Grosso
Performance |
| Timeline |
| General Shopping e |
| Energisa Mato Grosso |
General Shopping and Energisa Mato Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Shopping and Energisa Mato
The main advantage of trading using opposite General Shopping and Energisa Mato positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Shopping position performs unexpectedly, Energisa Mato 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 Energisa Mato will offset losses from the drop in Energisa Mato's long position.| General Shopping vs. Fundo de Investimento | General Shopping vs. Fator IFIX Fundo | General Shopping vs. Domo Fundo de | General Shopping vs. Credit Acceptance |
| Energisa Mato vs. Align Technology | Energisa Mato vs. British American Tobacco | Energisa Mato vs. United Rentals | Energisa Mato vs. Taiwan Semiconductor Manufacturing |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| CEOs Directory Screen CEOs from public companies around the world | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |