Correlation Between 2G ENERGY and Equitable Holdings
Can any of the company-specific risk be diversified away by investing in both 2G ENERGY and Equitable Holdings 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 2G ENERGY and Equitable Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 2G ENERGY and Equitable Holdings, you can compare the effects of market volatilities on 2G ENERGY and Equitable Holdings 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 2G ENERGY with a short position of Equitable Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of 2G ENERGY and Equitable Holdings.
Diversification Opportunities for 2G ENERGY and Equitable Holdings
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 2GB and Equitable is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding 2G ENERGY and Equitable Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equitable Holdings and 2G ENERGY 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 2G ENERGY are associated (or correlated) with Equitable Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equitable Holdings has no effect on the direction of 2G ENERGY i.e., 2G ENERGY and Equitable Holdings go up and down completely randomly.
Pair Corralation between 2G ENERGY and Equitable Holdings
Assuming the 90 days trading horizon 2G ENERGY is expected to under-perform the Equitable Holdings. In addition to that, 2G ENERGY is 1.17 times more volatile than Equitable Holdings. It trades about -0.1 of its total potential returns per unit of risk. Equitable Holdings is currently generating about -0.05 per unit of volatility. If you would invest 4,960 in Equitable Holdings on November 27, 2024 and sell it today you would lose (120.00) from holding Equitable Holdings or give up 2.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
2G ENERGY vs. Equitable Holdings
Performance |
| Timeline |
| 2G ENERGY |
| Equitable Holdings |
2G ENERGY and Equitable Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 2G ENERGY and Equitable Holdings
The main advantage of trading using opposite 2G ENERGY and Equitable Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 2G ENERGY position performs unexpectedly, Equitable Holdings 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 Equitable Holdings will offset losses from the drop in Equitable Holdings' long position.| 2G ENERGY vs. NH HOTEL GROUP | 2G ENERGY vs. Summit Hotel Properties | 2G ENERGY vs. Hitachi Construction Machinery | 2G ENERGY vs. InterContinental Hotels Group |
| Equitable Holdings vs. Waste Management | Equitable Holdings vs. OFFICE DEPOT | Equitable Holdings vs. CITY OFFICE REIT | Equitable Holdings vs. Cleanaway Waste Management |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |