Correlation Between Mapfre and Enags SA
Can any of the company-specific risk be diversified away by investing in both Mapfre and Enags SA 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 Mapfre and Enags SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mapfre and Enags SA, you can compare the effects of market volatilities on Mapfre and Enags SA 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 Mapfre with a short position of Enags SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mapfre and Enags SA.
Diversification Opportunities for Mapfre and Enags SA
Pay attention - limited upside
The 3 months correlation between Mapfre and Enags is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Mapfre and Enags SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enags SA and Mapfre 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 Mapfre are associated (or correlated) with Enags SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enags SA has no effect on the direction of Mapfre i.e., Mapfre and Enags SA go up and down completely randomly.
Pair Corralation between Mapfre and Enags SA
Assuming the 90 days trading horizon Mapfre is expected to generate 1.33 times more return on investment than Enags SA. However, Mapfre is 1.33 times more volatile than Enags SA. It trades about 0.14 of its potential returns per unit of risk. Enags SA is currently generating about -0.19 per unit of risk. If you would invest 242.00 in Mapfre on August 28, 2024 and sell it today you would earn a total of 17.00 from holding Mapfre or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Mapfre vs. Enags SA
Performance |
| Timeline |
| Mapfre |
| Enags SA |
Mapfre and Enags SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mapfre and Enags SA
The main advantage of trading using opposite Mapfre and Enags SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mapfre position performs unexpectedly, Enags SA 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 Enags SA will offset losses from the drop in Enags SA's long position.| Mapfre vs. Azaria Rental SOCIMI | Mapfre vs. Tier1 Technology SA | Mapfre vs. Cellnex Telecom SA | Mapfre vs. Atrys Health SL |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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