Correlation Between IAUCL and Enel Generacin
Specify exactly 2 symbols:
By analyzing existing cross correlation between IAUCL and Enel Generacin Chile, you can compare the effects of market volatilities on IAUCL and Enel Generacin 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 IAUCL with a short position of Enel Generacin. Check out your portfolio center. Please also check ongoing floating volatility patterns of IAUCL and Enel Generacin.
Diversification Opportunities for IAUCL and Enel Generacin
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IAUCL and Enel is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding IAUCL and Enel Generacin Chile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enel Generacin Chile and IAUCL 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 IAUCL are associated (or correlated) with Enel Generacin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enel Generacin Chile has no effect on the direction of IAUCL i.e., IAUCL and Enel Generacin go up and down completely randomly.
Pair Corralation between IAUCL and Enel Generacin
Assuming the 90 days trading horizon IAUCL is expected to generate 2.81 times less return on investment than Enel Generacin. In addition to that, IAUCL is 1.68 times more volatile than Enel Generacin Chile. It trades about 0.05 of its total potential returns per unit of risk. Enel Generacin Chile is currently generating about 0.24 per unit of volatility. If you would invest 34,420 in Enel Generacin Chile on September 20, 2024 and sell it today you would earn a total of 3,084 from holding Enel Generacin Chile or generate 8.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IAUCL vs. Enel Generacin Chile
Performance |
| Timeline |
| IAUCL |
| Enel Generacin Chile |
IAUCL and Enel Generacin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IAUCL and Enel Generacin
The main advantage of trading using opposite IAUCL and Enel Generacin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IAUCL position performs unexpectedly, Enel Generacin 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 Generacin will offset losses from the drop in Enel Generacin's long position.| IAUCL vs. Aguas Andinas SA | IAUCL vs. Parq Arauco | IAUCL vs. Enel Generacin Chile | IAUCL vs. Sociedad Matriz SAAM |
| Enel Generacin vs. Enel Amricas SA | Enel Generacin vs. Enel Chile SA | Enel Generacin vs. Aguas Andinas SA | Enel Generacin vs. Parq Arauco |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |