Correlation Between Southern Copper and ENGIE Energia
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By analyzing existing cross correlation between Southern Copper Corp and ENGIE Energia Peru, you can compare the effects of market volatilities on Southern Copper and ENGIE Energia 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 Southern Copper with a short position of ENGIE Energia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern Copper and ENGIE Energia.
Diversification Opportunities for Southern Copper and ENGIE Energia
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Southern and ENGIE is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Southern Copper Corp and ENGIE Energia Peru in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENGIE Energia Peru and Southern Copper 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 Southern Copper Corp are associated (or correlated) with ENGIE Energia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENGIE Energia Peru has no effect on the direction of Southern Copper i.e., Southern Copper and ENGIE Energia go up and down completely randomly.
Pair Corralation between Southern Copper and ENGIE Energia
Assuming the 90 days trading horizon Southern Copper Corp is expected to generate 2.06 times more return on investment than ENGIE Energia. However, Southern Copper is 2.06 times more volatile than ENGIE Energia Peru. It trades about 0.06 of its potential returns per unit of risk. ENGIE Energia Peru is currently generating about -0.03 per unit of risk. If you would invest 6,100 in Southern Copper Corp on September 4, 2024 and sell it today you would earn a total of 3,900 from holding Southern Copper Corp or generate 63.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.45% |
| Values | Daily Returns |
Southern Copper Corp vs. ENGIE Energia Peru
Performance |
| Timeline |
| Southern Copper Corp |
| ENGIE Energia Peru |
Southern Copper and ENGIE Energia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southern Copper and ENGIE Energia
The main advantage of trading using opposite Southern Copper and ENGIE Energia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern Copper position performs unexpectedly, ENGIE Energia 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 ENGIE Energia will offset losses from the drop in ENGIE Energia's long position.| Southern Copper vs. Corporacion Aceros Arequipa | Southern Copper vs. Nexa Resources Peru | Southern Copper vs. Compania de Minas |
| ENGIE Energia vs. Southern Copper Corp | ENGIE Energia vs. InRetail Peru Corp | ENGIE Energia vs. Banco de Credito |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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