Correlation Between Xp Properties and Energisa
Can any of the company-specific risk be diversified away by investing in both Xp Properties 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 Xp Properties and Energisa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xp Properties Fundo and Energisa SA, you can compare the effects of market volatilities on Xp Properties 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 Xp Properties with a short position of Energisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xp Properties and Energisa.
Diversification Opportunities for Xp Properties and Energisa
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between XPPR11 and Energisa is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Xp Properties Fundo and Energisa SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energisa SA and Xp Properties 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 Xp Properties Fundo 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 Xp Properties i.e., Xp Properties and Energisa go up and down completely randomly.
Pair Corralation between Xp Properties and Energisa
Assuming the 90 days trading horizon Xp Properties Fundo is expected to under-perform the Energisa. But the fund apears to be less risky and, when comparing its historical volatility, Xp Properties Fundo is 1.36 times less risky than Energisa. The fund trades about -0.17 of its potential returns per unit of risk. The Energisa SA is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 4,686 in Energisa SA on September 1, 2024 and sell it today you would lose (665.00) from holding Energisa SA or give up 14.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.22% |
| Values | Daily Returns |
Xp Properties Fundo vs. Energisa SA
Performance |
| Timeline |
| Xp Properties Fundo |
| Energisa SA |
Xp Properties and Energisa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xp Properties and Energisa
The main advantage of trading using opposite Xp Properties and Energisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xp Properties 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.| Xp Properties vs. Energisa SA | Xp Properties vs. BTG Pactual Logstica | Xp Properties vs. Plano Plano Desenvolvimento | Xp Properties vs. Companhia Habitasul de |
| Energisa vs. Transmissora Aliana de | Energisa vs. CTEEP Companhia | Energisa vs. Companhia Paranaense de | Energisa vs. Companhia Energtica de |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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