Correlation Between OGE Energy and Avangrid
Can any of the company-specific risk be diversified away by investing in both OGE Energy and Avangrid 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 OGE Energy and Avangrid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OGE Energy and Avangrid, you can compare the effects of market volatilities on OGE Energy and Avangrid 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 OGE Energy with a short position of Avangrid. Check out your portfolio center. Please also check ongoing floating volatility patterns of OGE Energy and Avangrid.
Diversification Opportunities for OGE Energy and Avangrid
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OGE and Avangrid is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OGE Energy and Avangrid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avangrid and OGE 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 OGE Energy are associated (or correlated) with Avangrid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avangrid has no effect on the direction of OGE Energy i.e., OGE Energy and Avangrid go up and down completely randomly.
Pair Corralation between OGE Energy and Avangrid
If you would invest 4,235 in OGE Energy on December 1, 2024 and sell it today you would earn a total of 393.00 from holding OGE Energy or generate 9.28% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
OGE Energy vs. Avangrid
Performance |
Timeline |
OGE Energy |
Avangrid |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
OGE Energy and Avangrid Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with OGE Energy and Avangrid
The main advantage of trading using opposite OGE Energy and Avangrid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OGE Energy position performs unexpectedly, Avangrid 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 Avangrid will offset losses from the drop in Avangrid's long position.OGE Energy vs. Alliant Energy Corp | OGE Energy vs. CMS Energy | OGE Energy vs. CenterPoint Energy | OGE Energy vs. Pinnacle West Capital |
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 CEOs Directory module to screen CEOs from public companies around the world.
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