Correlation Between Enags SA and Cia De

Can any of the company-specific risk be diversified away by investing in both Enags SA and Cia De 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 Enags SA and Cia De into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Enags SA and Cia de Distribucion, you can compare the effects of market volatilities on Enags SA and Cia De 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 Enags SA with a short position of Cia De. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enags SA and Cia De.

Diversification Opportunities for Enags SA and Cia De

-0.5

Correlation Coefficient

Enags SA  Cia De

Very good diversification

The 3 months correlation between Enags and Cia is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Enags SA and Cia de Distribucion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cia de Distribucion and Enags 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 Enags SA are associated (or correlated) with Cia De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cia de Distribucion has no effect on the direction of Enags SA i.e., Enags SA and Cia De go up and down completely randomly.

Pair Corralation between Enags SA and Cia De

Assuming the 90 days trading horizon Enags SA is expected to generate 0.67 times more return on investment than Cia De. However, Enags SA is 1.49 times less risky than Cia De. It trades about 0.12 of its potential returns per unit of risk. Cia de Distribucion is currently generating about -0.1 per unit of risk. If you would invest  1,267  in Enags SA on April 23, 2025 and sell it today you would earn a total of  81.00  from holding Enags SA or generate 6.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Enags SA  vs.  Cia de Distribucion

Enags SA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Enags SA are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Enags SA may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Cia de Distribucion

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cia de Distribucion has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Enags SA and Cia De

The main advantage of trading using opposite Enags SA and Cia De positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enags SA position performs unexpectedly, Cia De 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 Cia De will offset losses from the drop in Cia De's long position.

The idea behind Enags SA and Cia de Distribucion pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.