Correlation Between Energisa and RB Capital
Can any of the company-specific risk be diversified away by investing in both Energisa and RB Capital 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 Energisa and RB Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energisa SA and RB Capital Office, you can compare the effects of market volatilities on Energisa and RB Capital 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 Energisa with a short position of RB Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energisa and RB Capital.
Diversification Opportunities for Energisa and RB Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Energisa and RBCO11 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Energisa SA and RB Capital Office in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RB Capital Office and Energisa 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 Energisa SA are associated (or correlated) with RB Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RB Capital Office has no effect on the direction of Energisa i.e., Energisa and RB Capital go up and down completely randomly.
Pair Corralation between Energisa and RB Capital
If you would invest 4,400 in RB Capital Office on September 5, 2024 and sell it today you would earn a total of 0.00 from holding RB Capital Office or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Energisa SA vs. RB Capital Office
Performance |
Timeline |
Energisa SA |
RB Capital Office |
Energisa and RB Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Energisa and RB Capital
The main advantage of trading using opposite Energisa and RB Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energisa position performs unexpectedly, RB Capital 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 RB Capital will offset losses from the drop in RB Capital's long position.Energisa vs. Equatorial Energia SA | Energisa vs. CPFL Energia SA | Energisa vs. Eneva SA | Energisa vs. Companhia de Saneamento |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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