Correlation Between Everspin Technologies and 26442UAC8

Can any of the company-specific risk be diversified away by investing in both Everspin Technologies and 26442UAC8 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 Everspin Technologies and 26442UAC8 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Everspin Technologies and DUKE ENERGY PROGRESS, you can compare the effects of market volatilities on Everspin Technologies and 26442UAC8 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 Everspin Technologies with a short position of 26442UAC8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everspin Technologies and 26442UAC8.

Diversification Opportunities for Everspin Technologies and 26442UAC8

-0.46

Correlation Coefficient

Everspin Technologies  26442UAC8

Very good diversification

The 3 months correlation between Everspin and 26442UAC8 is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Everspin Technologies and DUKE ENERGY PROGRESS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DUKE ENERGY PROGRESS and Everspin Technologies 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 Everspin Technologies are associated (or correlated) with 26442UAC8. 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 PROGRESS has no effect on the direction of Everspin Technologies i.e., Everspin Technologies and 26442UAC8 go up and down completely randomly.

Pair Corralation between Everspin Technologies and 26442UAC8

Given the investment horizon of 90 days Everspin Technologies is expected to generate 230.29 times less return on investment than 26442UAC8. But when comparing it to its historical volatility, Everspin Technologies is 24.9 times less risky than 26442UAC8. It trades about 0.01 of its potential returns per unit of risk. DUKE ENERGY PROGRESS is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  8,042  in DUKE ENERGY PROGRESS on October 23, 2024 and sell it today you would lose (443.00) from holding DUKE ENERGY PROGRESS or give up 5.51% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	46.46%
Values	Daily Returns

Everspin Technologies  vs.  DUKE ENERGY PROGRESS

Everspin Technologies

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Everspin Technologies are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent basic indicators, Everspin Technologies may actually be approaching a critical reversion point that can send shares even higher in February 2025.

DUKE ENERGY PROGRESS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days DUKE ENERGY PROGRESS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 26442UAC8 is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Everspin Technologies and 26442UAC8

The main advantage of trading using opposite Everspin Technologies and 26442UAC8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everspin Technologies position performs unexpectedly, 26442UAC8 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 26442UAC8 will offset losses from the drop in 26442UAC8's long position.

The idea behind Everspin Technologies and DUKE ENERGY PROGRESS 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.

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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..