Correlation Between Consolidated Edison and Enel Americas
Can any of the company-specific risk be diversified away by investing in both Consolidated Edison and Enel Americas 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 Consolidated Edison and Enel Americas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Consolidated Edison and Enel Americas SA, you can compare the effects of market volatilities on Consolidated Edison and Enel Americas 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 Consolidated Edison with a short position of Enel Americas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consolidated Edison and Enel Americas.
Diversification Opportunities for Consolidated Edison and Enel Americas
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Consolidated and Enel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Consolidated Edison and Enel Americas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enel Americas SA and Consolidated Edison 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 Consolidated Edison are associated (or correlated) with Enel Americas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enel Americas SA has no effect on the direction of Consolidated Edison i.e., Consolidated Edison and Enel Americas go up and down completely randomly.
Pair Corralation between Consolidated Edison and Enel Americas
If you would invest 8,835 in Consolidated Edison on January 17, 2024 and sell it today you would earn a total of 97.00 from holding Consolidated Edison or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Consolidated Edison vs. Enel Americas SA
Performance |
| Timeline |
| Consolidated Edison |
| Enel Americas SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Consolidated Edison and Enel Americas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consolidated Edison and Enel Americas
The main advantage of trading using opposite Consolidated Edison and Enel Americas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consolidated Edison position performs unexpectedly, Enel Americas 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 Americas will offset losses from the drop in Enel Americas' long position.| Consolidated Edison vs. Alliant Energy Corp | Consolidated Edison vs. Pinnacle West Capital | Consolidated Edison vs. FirstEnergy | Consolidated Edison vs. Edison International |
| Enel Americas vs. Palomar Holdings | Enel Americas vs. SBM Offshore NV | Enel Americas vs. NMI Holdings | Enel Americas vs. Aegon NV ADR |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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