Correlation Between Ingevec and Energia Latina
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By analyzing existing cross correlation between Ingevec and Energia Latina SA, you can compare the effects of market volatilities on Ingevec and Energia Latina 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 Energia Latina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingevec and Energia Latina.
Diversification Opportunities for Ingevec and Energia Latina
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ingevec and Energia is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Ingevec and Energia Latina SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energia Latina SA 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 Energia Latina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energia Latina SA has no effect on the direction of Ingevec i.e., Ingevec and Energia Latina go up and down completely randomly.
Pair Corralation between Ingevec and Energia Latina
Assuming the 90 days trading horizon Ingevec is expected to generate 1.51 times less return on investment than Energia Latina. In addition to that, Ingevec is 1.3 times more volatile than Energia Latina SA. It trades about 0.07 of its total potential returns per unit of risk. Energia Latina SA is currently generating about 0.13 per unit of volatility. If you would invest 75,479 in Energia Latina SA on September 19, 2024 and sell it today you would earn a total of 18,021 from holding Energia Latina SA or generate 23.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 75.36% |
| Values | Daily Returns |
Ingevec vs. Energia Latina SA
Performance |
| Timeline |
| Ingevec |
| Energia Latina SA |
Ingevec and Energia Latina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingevec and Energia Latina
The main advantage of trading using opposite Ingevec and Energia Latina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingevec position performs unexpectedly, Energia Latina 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 Energia Latina will offset losses from the drop in Energia Latina's long position.| Ingevec vs. Energia Latina SA | Ingevec vs. Embotelladora Andina SA | Ingevec vs. Administradora Americana de | Ingevec vs. Salfacorp |
| Energia Latina vs. Aguas Andinas SA | Energia Latina vs. Parq Arauco | Energia Latina vs. Enel Generacin Chile | Energia Latina vs. Sociedad Matriz SAAM |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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