Correlation Between Upper Street and CONSOLIDATED

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

By analyzing existing cross correlation between Upper Street Marketing and CONSOLIDATED EDISON N, you can compare the effects of market volatilities on Upper Street and CONSOLIDATED 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 Upper Street with a short position of CONSOLIDATED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Upper Street and CONSOLIDATED.

Diversification Opportunities for Upper Street and CONSOLIDATED

0.0

Correlation Coefficient

Upper Street  CONSOLIDATED

Pay attention - limited upside

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

Pair Corralation between Upper Street and CONSOLIDATED

If you would invest  8,028  in CONSOLIDATED EDISON N on December 30, 2024 and sell it today you would earn a total of  286.00  from holding CONSOLIDATED EDISON N or generate 3.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	59.68%
Values	Daily Returns

Upper Street Marketing  vs.  CONSOLIDATED EDISON N

Upper Street Marketing

Risk-Adjusted Performance

Very Weak

Over the last 90 days Upper Street Marketing has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Upper Street is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

CONSOLIDATED EDISON

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CONSOLIDATED EDISON N are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, CONSOLIDATED may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Upper Street and CONSOLIDATED

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

The idea behind Upper Street Marketing and CONSOLIDATED EDISON N 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.

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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 Transaction History module to view history of all your transactions and understand their impact on performance.