Correlation Between PNM Old and Evergy,

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

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

Diversification Opportunities for PNM Old and Evergy,

0.0

Correlation Coefficient

PNM Old  Evergy,

Pay attention - limited upside

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

Pair Corralation between PNM Old and Evergy,

If you would invest  6,105  in Evergy, on December 26, 2024 and sell it today you would earn a total of  628.00  from holding Evergy, or generate 10.29% return on investment over 90 days.

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

PNM Old  vs.  Evergy,

PNM Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days PNM Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, PNM Old is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Evergy,

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Evergy, are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Evergy, may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with PNM Old and Evergy,

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

The idea behind PNM Old and Evergy, 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.