Correlation Between SP Merval and Enel Generacion
Can any of the company-specific risk be diversified away by investing in both SP Merval and Enel Generacion 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 SP Merval and Enel Generacion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SP Merval and Enel Generacion Costanera, you can compare the effects of market volatilities on SP Merval and Enel Generacion 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 SP Merval with a short position of Enel Generacion. Check out your portfolio center. Please also check ongoing floating volatility patterns of SP Merval and Enel Generacion.
Diversification Opportunities for SP Merval and Enel Generacion
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MERV and Enel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SP Merval and Enel Generacion Costanera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enel Generacion Costanera and SP Merval 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 SP Merval are associated (or correlated) with Enel Generacion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enel Generacion Costanera has no effect on the direction of SP Merval i.e., SP Merval and Enel Generacion go up and down completely randomly.
Pair Corralation between SP Merval and Enel Generacion
If you would invest 39,200 in Enel Generacion Costanera on September 1, 2024 and sell it today you would earn a total of 3,150 from holding Enel Generacion Costanera or generate 8.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SP Merval vs. Enel Generacion Costanera
Performance |
| Timeline |
SP Merval and Enel Generacion Volatility Contrast
Predicted Return Density |
| Returns |
SP Merval
Pair trading matchups for SP Merval
Enel Generacion Costanera
Pair trading matchups for Enel Generacion
Pair Trading with SP Merval and Enel Generacion
The main advantage of trading using opposite SP Merval and Enel Generacion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SP Merval position performs unexpectedly, Enel Generacion 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 Generacion will offset losses from the drop in Enel Generacion's long position.| SP Merval vs. Telecom Argentina | SP Merval vs. Compania de Transporte | SP Merval vs. Agrometal SAI | SP Merval vs. Transportadora de Gas |
| Enel Generacion vs. Empresa Distribuidora Electrica | Enel Generacion vs. Longvie SA | Enel Generacion vs. American Express Co | Enel Generacion vs. United States Steel |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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