Correlation Between ENEL Societa and Enel SpA
Can any of the company-specific risk be diversified away by investing in both ENEL Societa and Enel SpA 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 Societa and Enel SpA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ENEL Societa per and Enel SpA, you can compare the effects of market volatilities on ENEL Societa and Enel SpA 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 Societa with a short position of Enel SpA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENEL Societa and Enel SpA.
Diversification Opportunities for ENEL Societa and Enel SpA
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ENEL and Enel is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding ENEL Societa per and Enel SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enel SpA and ENEL Societa 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 Societa per are associated (or correlated) with Enel SpA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enel SpA has no effect on the direction of ENEL Societa i.e., ENEL Societa and Enel SpA go up and down completely randomly.
Pair Corralation between ENEL Societa and Enel SpA
Assuming the 90 days horizon ENEL Societa per is expected to generate 0.69 times more return on investment than Enel SpA. However, ENEL Societa per is 1.44 times less risky than Enel SpA. It trades about -0.24 of its potential returns per unit of risk. Enel SpA is currently generating about -0.21 per unit of risk. If you would invest 663.00 in ENEL Societa per on January 20, 2024 and sell it today you would lose (45.00) from holding ENEL Societa per or give up 6.79% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
ENEL Societa per vs. Enel SpA
Performance |
Timeline |
ENEL Societa per |
Enel SpA |
ENEL Societa and Enel SpA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ENEL Societa and Enel SpA
The main advantage of trading using opposite ENEL Societa and Enel SpA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENEL Societa position performs unexpectedly, Enel SpA 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 SpA will offset losses from the drop in Enel SpA's long position.ENEL Societa vs. Entergy New Orleans | ENEL Societa vs. Southern Co | ENEL Societa vs. Entergy New Orleans |
Enel SpA vs. ENEL Societa per | Enel SpA vs. Sempra Energy | Enel SpA vs. HUMANA INC | Enel SpA vs. Aquagold International |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
CEOs Directory Screen CEOs from public companies around the world | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |