Correlation Between Centrais Electricas and Multi Index
Can any of the company-specific risk be diversified away by investing in both Centrais Electricas and Multi Index 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 Centrais Electricas and Multi Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centrais Electricas Brasileiras and Multi Index 2045 Lifetime, you can compare the effects of market volatilities on Centrais Electricas and Multi Index 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 Centrais Electricas with a short position of Multi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centrais Electricas and Multi Index.
Diversification Opportunities for Centrais Electricas and Multi Index
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Centrais and Multi is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Centrais Electricas Brasileira and Multi Index 2045 Lifetime in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Index 2045 and Centrais Electricas 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 Centrais Electricas Brasileiras are associated (or correlated) with Multi Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Index 2045 has no effect on the direction of Centrais Electricas i.e., Centrais Electricas and Multi Index go up and down completely randomly.
Pair Corralation between Centrais Electricas and Multi Index
Considering the 90-day investment horizon Centrais Electricas Brasileiras is expected to generate 3.72 times more return on investment than Multi Index. However, Centrais Electricas is 3.72 times more volatile than Multi Index 2045 Lifetime. It trades about 0.14 of its potential returns per unit of risk. Multi Index 2045 Lifetime is currently generating about 0.21 per unit of risk. If you would invest 701.00 in Centrais Electricas Brasileiras on June 1, 2025 and sell it today you would earn a total of 123.00 from holding Centrais Electricas Brasileiras or generate 17.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Centrais Electricas Brasileira vs. Multi Index 2045 Lifetime
Performance |
| Timeline |
| Centrais Electricas |
| Multi Index 2045 |
Centrais Electricas and Multi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centrais Electricas and Multi Index
The main advantage of trading using opposite Centrais Electricas and Multi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centrais Electricas position performs unexpectedly, Multi Index 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 Multi Index will offset losses from the drop in Multi Index's long position.| Centrais Electricas vs. Enel Chile SA | Centrais Electricas vs. Centrais Eltricas Brasileiras | Centrais Electricas vs. Korea Electric Power | Centrais Electricas vs. Central Puerto SA |
| Multi Index vs. Regional Bank Fund | Multi Index vs. Regional Bank Fund | Multi Index vs. Multimanager Lifestyle Moderate | Multi Index vs. Multimanager Lifestyle Balanced |
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.
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