Correlation Between Portland General and Enel Chile
Can any of the company-specific risk be diversified away by investing in both Portland General and Enel Chile 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 Portland General and Enel Chile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Portland General Electric and Enel Chile SA, you can compare the effects of market volatilities on Portland General and Enel Chile 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 Portland General with a short position of Enel Chile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Portland General and Enel Chile.
Diversification Opportunities for Portland General and Enel Chile
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Portland and Enel is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Portland General Electric and Enel Chile SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enel Chile SA and Portland General 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 Portland General Electric are associated (or correlated) with Enel Chile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enel Chile SA has no effect on the direction of Portland General i.e., Portland General and Enel Chile go up and down completely randomly.
Pair Corralation between Portland General and Enel Chile
Considering the 90-day investment horizon Portland General Electric is expected to generate 0.75 times more return on investment than Enel Chile. However, Portland General Electric is 1.34 times less risky than Enel Chile. It trades about -0.04 of its potential returns per unit of risk. Enel Chile SA is currently generating about -0.11 per unit of risk. If you would invest 4,870 in Portland General Electric on August 27, 2024 and sell it today you would lose (63.00) from holding Portland General Electric or give up 1.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Portland General Electric vs. Enel Chile SA
Performance |
| Timeline |
| Portland General Electric |
| Enel Chile SA |
Portland General and Enel Chile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Portland General and Enel Chile
The main advantage of trading using opposite Portland General and Enel Chile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Portland General position performs unexpectedly, Enel Chile 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 Chile will offset losses from the drop in Enel Chile's long position.| Portland General vs. Dominion Energy | Portland General vs. Consolidated Edison | Portland General vs. Eversource Energy | Portland General vs. FirstEnergy |
| Enel Chile vs. Dominion Energy | Enel Chile vs. Consolidated Edison | Enel Chile vs. Eversource Energy | Enel Chile vs. FirstEnergy |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |