Correlation Between RB Capital and Energisa
Can any of the company-specific risk be diversified away by investing in both RB Capital and Energisa 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 RB Capital and Energisa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RB Capital Office and Energisa SA, you can compare the effects of market volatilities on RB Capital and Energisa 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 RB Capital with a short position of Energisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of RB Capital and Energisa.
Diversification Opportunities for RB Capital and Energisa
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between RBCO11 and Energisa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding RB Capital Office and Energisa SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energisa SA and RB Capital 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 RB Capital Office are associated (or correlated) with Energisa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energisa SA has no effect on the direction of RB Capital i.e., RB Capital and Energisa go up and down completely randomly.
Pair Corralation between RB Capital and Energisa
If you would invest 4,400 in RB Capital Office on September 12, 2024 and sell it today you would earn a total of 0.00 from holding RB Capital Office or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RB Capital Office vs. Energisa SA
Performance |
| Timeline |
| RB Capital Office |
| Energisa SA |
RB Capital and Energisa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RB Capital and Energisa
The main advantage of trading using opposite RB Capital and Energisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RB Capital position performs unexpectedly, Energisa 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 Energisa will offset losses from the drop in Energisa's long position.| RB Capital vs. Energisa SA | RB Capital vs. BTG Pactual Logstica | RB Capital vs. Plano Plano Desenvolvimento | RB Capital vs. Companhia Habitasul de |
| Energisa vs. Equatorial Energia SA | Energisa vs. CPFL Energia SA | Energisa vs. Eneva SA | Energisa vs. Companhia de Saneamento |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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