Correlation Between Sociedad Matriz and Enel Generacin
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By analyzing existing cross correlation between Sociedad Matriz SAAM and Enel Generacin Chile, you can compare the effects of market volatilities on Sociedad Matriz 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 Sociedad Matriz with a short position of Enel Generacin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sociedad Matriz and Enel Generacin.
Diversification Opportunities for Sociedad Matriz and Enel Generacin
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sociedad and Enel is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Sociedad Matriz SAAM 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 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 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 Sociedad Matriz i.e., Sociedad Matriz and Enel Generacin go up and down completely randomly.
Pair Corralation between Sociedad Matriz and Enel Generacin
Assuming the 90 days trading horizon Sociedad Matriz SAAM is expected to under-perform the Enel Generacin. In addition to that, Sociedad Matriz is 1.13 times more volatile than Enel Generacin Chile. It trades about -0.02 of its total potential returns per unit of risk. Enel Generacin Chile is currently generating about 0.13 per unit of volatility. If you would invest 32,363 in Enel Generacin Chile on August 24, 2024 and sell it today you would earn a total of 5,079 from holding Enel Generacin Chile or generate 15.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sociedad Matriz SAAM vs. Enel Generacin Chile
Performance |
| Timeline |
| Sociedad Matriz SAAM |
| Enel Generacin Chile |
Sociedad Matriz and Enel Generacin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sociedad Matriz and Enel Generacin
The main advantage of trading using opposite Sociedad Matriz and Enel Generacin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sociedad Matriz 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.| Sociedad Matriz vs. Vapores | Sociedad Matriz vs. Empresas CMPC | Sociedad Matriz vs. Colbun | Sociedad Matriz vs. Empresas Copec SA |
| Enel Generacin vs. Administradora Americana de | Enel Generacin vs. Energia Latina SA | Enel Generacin vs. Embotelladora Andina SA | Enel Generacin vs. Salfacorp |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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