Correlation Between Sociedad Matriz and Enel Chile
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By analyzing existing cross correlation between Sociedad Matriz SAAM and Enel Chile SA, you can compare the effects of market volatilities on Sociedad Matriz 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 Sociedad Matriz with a short position of Enel Chile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sociedad Matriz and Enel Chile.
Diversification Opportunities for Sociedad Matriz and Enel Chile
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sociedad and Enel is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Sociedad Matriz SAAM 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 Sociedad Matriz 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 Sociedad Matriz SAAM 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 Sociedad Matriz i.e., Sociedad Matriz and Enel Chile go up and down completely randomly.
Pair Corralation between Sociedad Matriz and Enel Chile
Assuming the 90 days trading horizon Sociedad Matriz is expected to generate 1.87 times less return on investment than Enel Chile. But when comparing it to its historical volatility, Sociedad Matriz SAAM is 1.26 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 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,423 in Enel Chile SA on September 3, 2024 and sell it today you would earn a total of 1,937 from holding Enel Chile SA or generate 56.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.57% |
| Values | Daily Returns |
Sociedad Matriz SAAM vs. Enel Chile SA
Performance |
| Timeline |
| Sociedad Matriz SAAM |
| Enel Chile SA |
Sociedad Matriz and Enel Chile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sociedad Matriz and Enel Chile
The main advantage of trading using opposite Sociedad Matriz and Enel Chile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sociedad Matriz 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.| Sociedad Matriz vs. Vapores | Sociedad Matriz vs. Enel Amricas SA | Sociedad Matriz vs. Empresas CMPC | Sociedad Matriz vs. Colbun |
| Enel Chile vs. Enel Amricas SA | Enel Chile vs. Banco de Chile | Enel Chile vs. Banco Santander Chile | Enel Chile vs. Colbun |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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