Correlation Between Endesa SA and Duke Energy
Can any of the company-specific risk be diversified away by investing in both Endesa SA 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 Endesa SA and Duke Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Endesa SA and Duke Energy, you can compare the effects of market volatilities on Endesa SA 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 Endesa SA with a short position of Duke Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endesa SA and Duke Energy.
Diversification Opportunities for Endesa SA and Duke Energy
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Endesa and Duke is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Endesa SA and Duke Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duke Energy and Endesa SA 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 Endesa SA 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 Endesa SA i.e., Endesa SA and Duke Energy go up and down completely randomly.
Pair Corralation between Endesa SA and Duke Energy
Assuming the 90 days horizon Endesa SA is expected to under-perform the Duke Energy. But the pink sheet apears to be less risky and, when comparing its historical volatility, Endesa SA is 1.0 times less risky than Duke Energy. The pink sheet trades about -0.05 of its potential returns per unit of risk. The Duke Energy is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 9,541 in Duke Energy on January 20, 2024 and sell it today you would earn a total of 52.00 from holding Duke Energy or generate 0.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Endesa SA vs. Duke Energy
Performance |
| Timeline |
| Endesa SA |
| Duke Energy |
Endesa SA and Duke Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endesa SA and Duke Energy
The main advantage of trading using opposite Endesa SA and Duke Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endesa SA 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.| Endesa SA vs. Enel Chile SA | Endesa SA vs. Korea Electric Power | Endesa SA vs. IDACORP | Endesa SA vs. Centrais Electricas Brasileiras |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |