Correlation Between Grupo Empresas and Enel Generacin
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By analyzing existing cross correlation between Grupo Empresas Navieras and Enel Generacin Chile, you can compare the effects of market volatilities on Grupo Empresas 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 Grupo Empresas with a short position of Enel Generacin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Empresas and Enel Generacin.
Diversification Opportunities for Grupo Empresas and Enel Generacin
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Grupo and Enel is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Empresas Navieras 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 Grupo Empresas 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 Grupo Empresas Navieras 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 Grupo Empresas i.e., Grupo Empresas and Enel Generacin go up and down completely randomly.
Pair Corralation between Grupo Empresas and Enel Generacin
Assuming the 90 days trading horizon Grupo Empresas Navieras is expected to generate 0.94 times more return on investment than Enel Generacin. However, Grupo Empresas Navieras is 1.06 times less risky than Enel Generacin. It trades about 0.28 of its potential returns per unit of risk. Enel Generacin Chile is currently generating about 0.21 per unit of risk. If you would invest 3,617 in Grupo Empresas Navieras on September 12, 2024 and sell it today you would earn a total of 85.00 from holding Grupo Empresas Navieras or generate 2.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 56.52% |
| Values | Daily Returns |
Grupo Empresas Navieras vs. Enel Generacin Chile
Performance |
| Timeline |
| Grupo Empresas Navieras |
| Enel Generacin Chile |
Grupo Empresas and Enel Generacin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Empresas and Enel Generacin
The main advantage of trading using opposite Grupo Empresas and Enel Generacin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Empresas 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.| Grupo Empresas vs. Multiexport Foods SA | Grupo Empresas vs. LATAM Airlines Group | Grupo Empresas vs. Banco de Credito |
| Enel Generacin vs. Enel Amricas SA | Enel Generacin vs. Enel Chile SA | Enel Generacin vs. Aguas Andinas SA | Enel Generacin vs. Parq Arauco |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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