Correlation Between Edison International and Enel Americas
Can any of the company-specific risk be diversified away by investing in both Edison International 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 Edison International and Enel Americas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Edison International and Enel Americas SA, you can compare the effects of market volatilities on Edison International 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 Edison International with a short position of Enel Americas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edison International and Enel Americas.
Diversification Opportunities for Edison International and Enel Americas
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Edison and Enel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Edison International 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 Edison International 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 Edison International 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 Edison International i.e., Edison International and Enel Americas go up and down completely randomly.
Pair Corralation between Edison International and Enel Americas
If you would invest 5,706 in Edison International on January 25, 2024 and sell it today you would earn a total of 1,376 from holding Edison International or generate 24.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Edison International vs. Enel Americas SA
Performance |
| Timeline |
| Edison International |
| Enel Americas SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Edison International and Enel Americas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edison International and Enel Americas
The main advantage of trading using opposite Edison International and Enel Americas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edison International 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.| Edison International vs. Southern Company | Edison International vs. American Electric Power | Edison International vs. Duke Energy | Edison International vs. Dominion Energy |
| Enel Americas vs. Cleanaway Waste Management | Enel Americas vs. Torm PLC Class | Enel Americas vs. Inter Parfums | Enel Americas vs. United Guardian |
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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