Correlation Between Ingevec and Enel Generacin
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By analyzing existing cross correlation between Ingevec and Enel Generacin Chile, you can compare the effects of market volatilities on Ingevec 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 Ingevec with a short position of Enel Generacin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingevec and Enel Generacin.
Diversification Opportunities for Ingevec and Enel Generacin
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ingevec and Enel is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Ingevec 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 Ingevec 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 Ingevec 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 Ingevec i.e., Ingevec and Enel Generacin go up and down completely randomly.
Pair Corralation between Ingevec and Enel Generacin
Assuming the 90 days trading horizon Ingevec is expected to generate 2.56 times less return on investment than Enel Generacin. In addition to that, Ingevec is 1.11 times more volatile than Enel Generacin Chile. It trades about 0.06 of its total potential returns per unit of risk. Enel Generacin Chile is currently generating about 0.16 per unit of volatility. If you would invest 31,507 in Enel Generacin Chile on September 19, 2024 and sell it today you would earn a total of 5,993 from holding Enel Generacin Chile or generate 19.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 70.25% |
| Values | Daily Returns |
Ingevec vs. Enel Generacin Chile
Performance |
| Timeline |
| Ingevec |
| Enel Generacin Chile |
Ingevec and Enel Generacin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingevec and Enel Generacin
The main advantage of trading using opposite Ingevec and Enel Generacin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingevec 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.| Ingevec vs. Aguas Andinas SA | Ingevec vs. Parq Arauco | Ingevec vs. Enel Generacin Chile | Ingevec vs. Sociedad Matriz SAAM |
| Enel Generacin vs. Embotelladora Andina SA | Enel Generacin vs. Administradora Americana de | Enel Generacin vs. Las Condes | Enel Generacin vs. Salfacorp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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