Correlation Between Plano Plano and NRG Energy,

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

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

Diversification Opportunities for Plano Plano and NRG Energy,

-0.36

Correlation Coefficient

Plano Plano  NRG Energy,

Very good diversification

The 3 months correlation between Plano and NRG is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Plano Plano Desenvolvimento and NRG Energy, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NRG Energy, and Plano Plano 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 Plano Plano Desenvolvimento are associated (or correlated) with NRG Energy,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NRG Energy, has no effect on the direction of Plano Plano i.e., Plano Plano and NRG Energy, go up and down completely randomly.

Pair Corralation between Plano Plano and NRG Energy,

Assuming the 90 days trading horizon Plano Plano Desenvolvimento is expected to generate 0.95 times more return on investment than NRG Energy,. However, Plano Plano Desenvolvimento is 1.05 times less risky than NRG Energy,. It trades about 0.17 of its potential returns per unit of risk. NRG Energy, is currently generating about 0.02 per unit of risk. If you would invest  877.00  in Plano Plano Desenvolvimento on December 22, 2024 and sell it today you would earn a total of  328.00  from holding Plano Plano Desenvolvimento or generate 37.4% return on investment over 90 days.

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

Plano Plano Desenvolvimento  vs.  NRG Energy,

Plano Plano Desenvol

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Plano Plano Desenvolvimento are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Plano Plano unveiled solid returns over the last few months and may actually be approaching a breakup point.

NRG Energy,

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in NRG Energy, are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, NRG Energy, is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Plano Plano and NRG Energy,

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

The idea behind Plano Plano Desenvolvimento and NRG Energy, 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 CEOs Directory module to screen CEOs from public companies around the world.