Correlation Between Enel Generacin and Duke Energy
Can any of the company-specific risk be diversified away by investing in both Enel Generacin and Duke Energy 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 Enel Generacin and Duke Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enel Generacin Costanera and Duke Energy, you can compare the effects of market volatilities on Enel Generacin and Duke Energy 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 Enel Generacin with a short position of Duke Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enel Generacin and Duke Energy.
Diversification Opportunities for Enel Generacin and Duke Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Enel and Duke is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Enel Generacin Costanera and Duke Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duke Energy and Enel Generacin 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 Enel Generacin Costanera are associated (or correlated) with Duke Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duke Energy has no effect on the direction of Enel Generacin i.e., Enel Generacin and Duke Energy go up and down completely randomly.
Pair Corralation between Enel Generacin and Duke Energy
If you would invest 9,466 in Duke Energy on January 25, 2024 and sell it today you would earn a total of 354.00 from holding Duke Energy or generate 3.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Enel Generacin Costanera vs. Duke Energy
Performance |
| Timeline |
| Enel Generacin Costanera |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Duke Energy |
Enel Generacin and Duke Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enel Generacin and Duke Energy
The main advantage of trading using opposite Enel Generacin and Duke Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enel Generacin position performs unexpectedly, Duke Energy 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 Duke Energy will offset losses from the drop in Duke Energy's long position.| Enel Generacin vs. Tianjin Capital Environmental | Enel Generacin vs. Quanex Building Products | Enel Generacin vs. Patterson UTI Energy | Enel Generacin vs. Noble plc |
| Duke Energy vs. Consolidated Edison | Duke Energy vs. Dominion Energy | Duke Energy vs. American Electric Power | Duke Energy vs. Nextera Energy |
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 CEOs Directory module to screen CEOs from public companies around the world.
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