Correlation Between KYUSHU EL and PG E
Can any of the company-specific risk be diversified away by investing in both KYUSHU EL and PG E 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 KYUSHU EL and PG E into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KYUSHU EL PWR and PG E P6, you can compare the effects of market volatilities on KYUSHU EL and PG E 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 KYUSHU EL with a short position of PG E. Check out your portfolio center. Please also check ongoing floating volatility patterns of KYUSHU EL and PG E.
Diversification Opportunities for KYUSHU EL and PG E
Excellent diversification
The 3 months correlation between KYUSHU and PCG6 is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding KYUSHU EL PWR and PG E P6 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PG E P6 and KYUSHU EL 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 KYUSHU EL PWR are associated (or correlated) with PG E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PG E P6 has no effect on the direction of KYUSHU EL i.e., KYUSHU EL and PG E go up and down completely randomly.
Pair Corralation between KYUSHU EL and PG E
Assuming the 90 days horizon KYUSHU EL PWR is expected to generate 1.46 times more return on investment than PG E. However, KYUSHU EL is 1.46 times more volatile than PG E P6. It trades about 0.07 of its potential returns per unit of risk. PG E P6 is currently generating about 0.05 per unit of risk. If you would invest 472.00 in KYUSHU EL PWR on September 3, 2024 and sell it today you would earn a total of 438.00 from holding KYUSHU EL PWR or generate 92.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KYUSHU EL PWR vs. PG E P6
Performance |
| Timeline |
| KYUSHU EL PWR |
| PG E P6 |
KYUSHU EL and PG E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KYUSHU EL and PG E
The main advantage of trading using opposite KYUSHU EL and PG E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KYUSHU EL position performs unexpectedly, PG E 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 PG E will offset losses from the drop in PG E's long position.| KYUSHU EL vs. Lendlease Group | KYUSHU EL vs. AWILCO DRILLING PLC | KYUSHU EL vs. LG Display Co | KYUSHU EL vs. Playtech plc |
| PG E vs. Ebro Foods SA | PG E vs. Thai Beverage Public | PG E vs. Gaztransport Technigaz SA | PG E vs. SENECA FOODS A |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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