Correlation Between Enel Chile and Fusion Fuel
Can any of the company-specific risk be diversified away by investing in both Enel Chile and Fusion Fuel 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 Chile and Fusion Fuel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enel Chile SA and Fusion Fuel Green, you can compare the effects of market volatilities on Enel Chile and Fusion Fuel 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 Chile with a short position of Fusion Fuel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enel Chile and Fusion Fuel.
Diversification Opportunities for Enel Chile and Fusion Fuel
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enel and Fusion is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Enel Chile SA and Fusion Fuel Green in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fusion Fuel Green and Enel Chile 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 Chile SA are associated (or correlated) with Fusion Fuel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fusion Fuel Green has no effect on the direction of Enel Chile i.e., Enel Chile and Fusion Fuel go up and down completely randomly.
Pair Corralation between Enel Chile and Fusion Fuel
Given the investment horizon of 90 days Enel Chile SA is expected to generate 0.09 times more return on investment than Fusion Fuel. However, Enel Chile SA is 11.01 times less risky than Fusion Fuel. It trades about 0.1 of its potential returns per unit of risk. Fusion Fuel Green is currently generating about -0.04 per unit of risk. If you would invest 350.00 in Enel Chile SA on September 2, 2025 and sell it today you would earn a total of 35.00 from holding Enel Chile SA or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enel Chile SA vs. Fusion Fuel Green
Performance |
| Timeline |
| Enel Chile SA |
| Fusion Fuel Green |
Enel Chile and Fusion Fuel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enel Chile and Fusion Fuel
The main advantage of trading using opposite Enel Chile and Fusion Fuel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enel Chile position performs unexpectedly, Fusion Fuel 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 Fusion Fuel will offset losses from the drop in Fusion Fuel's long position.| Enel Chile vs. Yuexiu Transport Infrastructure | Enel Chile vs. Spotlight Homes | Enel Chile vs. Evs Broadcast Equipment | Enel Chile vs. Beazer Homes USA |
| Fusion Fuel vs. Zhibao Technology Class | Fusion Fuel vs. Asure Software | Fusion Fuel vs. Day Tradexchange | Fusion Fuel vs. Retail Food Group |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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