Correlation Between 00108WAF7 and BAKER
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By analyzing existing cross correlation between AEP TEX INC and BAKER HUGHES A, you can compare the effects of market volatilities on 00108WAF7 and BAKER 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 00108WAF7 with a short position of BAKER. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and BAKER.
Diversification Opportunities for 00108WAF7 and BAKER
Good diversification
The 3 months correlation between 00108WAF7 and BAKER is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC and BAKER HUGHES A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAKER HUGHES A and 00108WAF7 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 AEP TEX INC are associated (or correlated) with BAKER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAKER HUGHES A has no effect on the direction of 00108WAF7 i.e., 00108WAF7 and BAKER go up and down completely randomly.
Pair Corralation between 00108WAF7 and BAKER
Assuming the 90 days trading horizon AEP TEX INC is expected to generate 431.56 times more return on investment than BAKER. However, 00108WAF7 is 431.56 times more volatile than BAKER HUGHES A. It trades about 0.14 of its potential returns per unit of risk. BAKER HUGHES A is currently generating about -0.11 per unit of risk. If you would invest 7,577 in AEP TEX INC on October 6, 2024 and sell it today you would earn a total of 91.00 from holding AEP TEX INC or generate 1.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 68.85% |
Values | Daily Returns |
AEP TEX INC vs. BAKER HUGHES A
Performance |
Timeline |
AEP TEX INC |
BAKER HUGHES A |
00108WAF7 and BAKER Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 00108WAF7 and BAKER
The main advantage of trading using opposite 00108WAF7 and BAKER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 position performs unexpectedly, BAKER 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 BAKER will offset losses from the drop in BAKER's long position.00108WAF7 vs. Vulcan Materials | 00108WAF7 vs. Gatos Silver | 00108WAF7 vs. Getty Images Holdings | 00108WAF7 vs. Cheche Group Class |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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