Correlation Between Multiexport Foods and Enel Transmission
Can any of the company-specific risk be diversified away by investing in both Multiexport Foods and Enel Transmission 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 Multiexport Foods and Enel Transmission into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multiexport Foods SA and Enel Transmission Chile, you can compare the effects of market volatilities on Multiexport Foods and Enel Transmission 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 Transmission. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multiexport Foods and Enel Transmission.
Diversification Opportunities for Multiexport Foods and Enel Transmission
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Multiexport and Enel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Multiexport Foods SA and Enel Transmission Chile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enel Transmission 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 Transmission. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enel Transmission Chile has no effect on the direction of Multiexport Foods i.e., Multiexport Foods and Enel Transmission go up and down completely randomly.
Pair Corralation between Multiexport Foods and Enel Transmission
If you would invest (100.00) in Enel Transmission Chile on August 28, 2024 and sell it today you would earn a total of 100.00 from holding Enel Transmission Chile or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Multiexport Foods SA vs. Enel Transmission Chile
Performance |
| Timeline |
| Multiexport Foods |
| Enel Transmission Chile |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Multiexport Foods and Enel Transmission Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multiexport Foods and Enel Transmission
The main advantage of trading using opposite Multiexport Foods and Enel Transmission positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multiexport Foods position performs unexpectedly, Enel Transmission 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 Transmission will offset losses from the drop in Enel Transmission'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 Transmission vs. Enel Generacin Chile | Enel Transmission vs. Enel Amricas SA | Enel Transmission vs. Enel Chile SA | Enel Transmission vs. Aguas Andinas 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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