Correlation Between DTE Energy and SYNTHETIC FIXED

Can any of the company-specific risk be diversified away by investing in both DTE Energy and SYNTHETIC FIXED 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 DTE Energy and SYNTHETIC FIXED into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between DTE Energy Co and SYNTHETIC FIXED INCOME, you can compare the effects of market volatilities on DTE Energy and SYNTHETIC FIXED 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 DTE Energy with a short position of SYNTHETIC FIXED. Check out your portfolio center. Please also check ongoing floating volatility patterns of DTE Energy and SYNTHETIC FIXED.

Diversification Opportunities for DTE Energy and SYNTHETIC FIXED

0.0

Correlation Coefficient

DTE Energy  SYNTHETIC FIXED

Pay attention - limited upside

The 3 months correlation between DTE and SYNTHETIC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DTE Energy Co and SYNTHETIC FIXED INCOME in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SYNTHETIC FIXED INCOME and DTE Energy 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 DTE Energy Co are associated (or correlated) with SYNTHETIC FIXED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SYNTHETIC FIXED INCOME has no effect on the direction of DTE Energy i.e., DTE Energy and SYNTHETIC FIXED go up and down completely randomly.

Pair Corralation between DTE Energy and SYNTHETIC FIXED

If you would invest  2,186  in DTE Energy Co on December 20, 2024 and sell it today you would earn a total of  48.00  from holding DTE Energy Co or generate 2.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

DTE Energy Co  vs.  SYNTHETIC FIXED INCOME

DTE Energy

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in DTE Energy Co are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, DTE Energy is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

SYNTHETIC FIXED INCOME

Risk-Adjusted Performance

Very Weak

Over the last 90 days SYNTHETIC FIXED INCOME has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward-looking indicators, SYNTHETIC FIXED is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with DTE Energy and SYNTHETIC FIXED

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

The idea behind DTE Energy Co and SYNTHETIC FIXED INCOME 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.