Correlation Between Altria and 26442CAR5
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By analyzing existing cross correlation between Altria Group and DUKE ENERGY CAROLINAS, you can compare the effects of market volatilities on Altria and 26442CAR5 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 Altria with a short position of 26442CAR5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altria and 26442CAR5.
Diversification Opportunities for Altria and 26442CAR5
Weak diversification
The 3 months correlation between Altria and 26442CAR5 is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Altria Group and DUKE ENERGY CAROLINAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DUKE ENERGY CAROLINAS and Altria 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 Altria Group are associated (or correlated) with 26442CAR5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DUKE ENERGY CAROLINAS has no effect on the direction of Altria i.e., Altria and 26442CAR5 go up and down completely randomly.
Pair Corralation between Altria and 26442CAR5
Allowing for the 90-day total investment horizon Altria Group is expected to generate 1.32 times more return on investment than 26442CAR5. However, Altria is 1.32 times more volatile than DUKE ENERGY CAROLINAS. It trades about 0.05 of its potential returns per unit of risk. DUKE ENERGY CAROLINAS is currently generating about -0.07 per unit of risk. If you would invest 4,885 in Altria Group on October 24, 2024 and sell it today you would earn a total of 196.00 from holding Altria Group or generate 4.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 60.0% |
Values | Daily Returns |
Altria Group vs. DUKE ENERGY CAROLINAS
Performance |
Timeline |
Altria Group |
DUKE ENERGY CAROLINAS |
Altria and 26442CAR5 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Altria and 26442CAR5
The main advantage of trading using opposite Altria and 26442CAR5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altria position performs unexpectedly, 26442CAR5 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 26442CAR5 will offset losses from the drop in 26442CAR5's long position.Altria vs. British American Tobacco | Altria vs. Universal | Altria vs. Imperial Brands PLC | Altria vs. Philip Morris International |
26442CAR5 vs. Gladstone Investment | 26442CAR5 vs. Skechers USA | 26442CAR5 vs. Two Harbors Investments | 26442CAR5 vs. Rocky Brands |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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