Correlation Between Enel Chile and Brookfield Infrastructure

Can any of the company-specific risk be diversified away by investing in both Enel Chile and Brookfield Infrastructure 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 Brookfield Infrastructure 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 Brookfield Infrastructure Corp, you can compare the effects of market volatilities on Enel Chile and Brookfield Infrastructure 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 Brookfield Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enel Chile and Brookfield Infrastructure.

Diversification Opportunities for Enel Chile and Brookfield Infrastructure

-0.18

Correlation Coefficient

Enel Chile  Brookfield Infrastructure

Good diversification

The 3 months correlation between Enel and Brookfield is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Enel Chile SA and Brookfield Infrastructure Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Infrastructure 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 Brookfield Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Infrastructure has no effect on the direction of Enel Chile i.e., Enel Chile and Brookfield Infrastructure go up and down completely randomly.

Pair Corralation between Enel Chile and Brookfield Infrastructure

Given the investment horizon of 90 days Enel Chile SA is expected to under-perform the Brookfield Infrastructure. In addition to that, Enel Chile is 1.06 times more volatile than Brookfield Infrastructure Corp. It trades about -0.19 of its total potential returns per unit of risk. Brookfield Infrastructure Corp is currently generating about -0.1 per unit of volatility. If you would invest  4,070  in Brookfield Infrastructure Corp on May 5, 2025 and sell it today you would lose (227.00) from holding Brookfield Infrastructure Corp or give up 5.58% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Enel Chile SA  vs.  Brookfield Infrastructure Corp

Enel Chile SA

Risk-Adjusted Performance

Very Weak

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

Brookfield Infrastructure

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Brookfield Infrastructure Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Brookfield Infrastructure is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Enel Chile and Brookfield Infrastructure

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

The idea behind Enel Chile SA and Brookfield Infrastructure Corp 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.