Correlation Between Multiexport Foods and Enel Generacin
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By analyzing existing cross correlation between Multiexport Foods SA and Enel Generacin Chile, you can compare the effects of market volatilities on Multiexport Foods 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 Multiexport Foods with a short position of Enel Generacin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multiexport Foods and Enel Generacin.
Diversification Opportunities for Multiexport Foods and Enel Generacin
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Multiexport and Enel is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Multiexport Foods SA 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 Multiexport Foods 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 Multiexport Foods SA 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 Multiexport Foods i.e., Multiexport Foods and Enel Generacin go up and down completely randomly.
Pair Corralation between Multiexport Foods and Enel Generacin
Assuming the 90 days trading horizon Multiexport Foods is expected to generate 258.5 times less return on investment than Enel Generacin. But when comparing it to its historical volatility, Multiexport Foods SA is 1.77 times less risky than Enel Generacin. It trades about 0.0 of its potential returns per unit of risk. Enel Generacin Chile is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 35,551 in Enel Generacin Chile on September 4, 2024 and sell it today you would earn a total of 2,060 from holding Enel Generacin Chile or generate 5.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 68.18% |
| Values | Daily Returns |
Multiexport Foods SA vs. Enel Generacin Chile
Performance |
| Timeline |
| Multiexport Foods |
| Enel Generacin Chile |
Multiexport Foods and Enel Generacin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multiexport Foods and Enel Generacin
The main advantage of trading using opposite Multiexport Foods and Enel Generacin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multiexport Foods 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.| Multiexport Foods vs. Aguas Andinas SA | Multiexport Foods vs. Parq Arauco | Multiexport Foods vs. Enel Generacin Chile | Multiexport Foods vs. Sociedad Matriz SAAM |
| Enel Generacin vs. Banco de Credito | Enel Generacin vs. LATAM Airlines Group | Enel Generacin vs. Multiexport Foods SA |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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