Correlation Between 00108WAF7 and 210385AB6
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By analyzing existing cross correlation between AEP TEX INC and CEG 56 01 MAR 28, you can compare the effects of market volatilities on 00108WAF7 and 210385AB6 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 210385AB6. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and 210385AB6.
Diversification Opportunities for 00108WAF7 and 210385AB6
Average diversification
The 3 months correlation between 00108WAF7 and 210385AB6 is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC and CEG 56 01 MAR 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEG 56 01 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 210385AB6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEG 56 01 has no effect on the direction of 00108WAF7 i.e., 00108WAF7 and 210385AB6 go up and down completely randomly.
Pair Corralation between 00108WAF7 and 210385AB6
Assuming the 90 days trading horizon AEP TEX INC is expected to generate 6.16 times more return on investment than 210385AB6. However, 00108WAF7 is 6.16 times more volatile than CEG 56 01 MAR 28. It trades about 0.16 of its potential returns per unit of risk. CEG 56 01 MAR 28 is currently generating about -0.05 per unit of risk. If you would invest 7,424 in AEP TEX INC on October 9, 2024 and sell it today you would earn a total of 797.00 from holding AEP TEX INC or generate 10.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 57.89% |
Values | Daily Returns |
AEP TEX INC vs. CEG 56 01 MAR 28
Performance |
Timeline |
AEP TEX INC |
CEG 56 01 |
00108WAF7 and 210385AB6 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 00108WAF7 and 210385AB6
The main advantage of trading using opposite 00108WAF7 and 210385AB6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 position performs unexpectedly, 210385AB6 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 210385AB6 will offset losses from the drop in 210385AB6's long position.00108WAF7 vs. Daily Journal Corp | 00108WAF7 vs. Playtech plc | 00108WAF7 vs. Adtalem Global Education | 00108WAF7 vs. Thomson Reuters Corp |
210385AB6 vs. Top Frontier Investment | 210385AB6 vs. SLR Investment Corp | 210385AB6 vs. Keurig Dr Pepper | 210385AB6 vs. SM Investments |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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