Correlation Between Companhia Energtica and Assicurazioni Generali
Can any of the company-specific risk be diversified away by investing in both Companhia Energtica and Assicurazioni Generali 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 Companhia Energtica and Assicurazioni Generali into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Companhia Energtica de and Assicurazioni Generali SpA, you can compare the effects of market volatilities on Companhia Energtica and Assicurazioni Generali 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 Companhia Energtica with a short position of Assicurazioni Generali. Check out your portfolio center. Please also check ongoing floating volatility patterns of Companhia Energtica and Assicurazioni Generali.
Diversification Opportunities for Companhia Energtica and Assicurazioni Generali
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Companhia and Assicurazioni is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Companhia Energtica de and Assicurazioni Generali SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assicurazioni Generali and Companhia Energtica 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 Companhia Energtica de are associated (or correlated) with Assicurazioni Generali. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assicurazioni Generali has no effect on the direction of Companhia Energtica i.e., Companhia Energtica and Assicurazioni Generali go up and down completely randomly.
Pair Corralation between Companhia Energtica and Assicurazioni Generali
Assuming the 90 days horizon Companhia Energtica de is expected to generate 1.91 times more return on investment than Assicurazioni Generali. However, Companhia Energtica is 1.91 times more volatile than Assicurazioni Generali SpA. It trades about 0.12 of its potential returns per unit of risk. Assicurazioni Generali SpA is currently generating about -0.01 per unit of risk. If you would invest 163.00 in Companhia Energtica de on August 17, 2025 and sell it today you would earn a total of 25.00 from holding Companhia Energtica de or generate 15.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Companhia Energtica de vs. Assicurazioni Generali SpA
Performance |
| Timeline |
| Companhia Energtica |
| Assicurazioni Generali |
Companhia Energtica and Assicurazioni Generali Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Companhia Energtica and Assicurazioni Generali
The main advantage of trading using opposite Companhia Energtica and Assicurazioni Generali positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Companhia Energtica position performs unexpectedly, Assicurazioni Generali 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 Assicurazioni Generali will offset losses from the drop in Assicurazioni Generali's long position.| Companhia Energtica vs. IBERDROLA ADR1 EO | Companhia Energtica vs. CIA ENGER ADR | Companhia Energtica vs. EVN AG | Companhia Energtica vs. KYUSHU EL PWR |
| Assicurazioni Generali vs. Berkshire Hathaway | Assicurazioni Generali vs. Allianz SE VNA | Assicurazioni Generali vs. AXA SA | Assicurazioni Generali vs. AXA SA |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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