Correlation Between Analog Devices and EXELON
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By analyzing existing cross correlation between Analog Devices and EXELON GENERATION LLC, you can compare the effects of market volatilities on Analog Devices and EXELON 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 Analog Devices with a short position of EXELON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Analog Devices and EXELON.
Diversification Opportunities for Analog Devices and EXELON
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Analog and EXELON is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Analog Devices and EXELON GENERATION LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXELON GENERATION LLC and Analog Devices 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 Analog Devices are associated (or correlated) with EXELON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXELON GENERATION LLC has no effect on the direction of Analog Devices i.e., Analog Devices and EXELON go up and down completely randomly.
Pair Corralation between Analog Devices and EXELON
Considering the 90-day investment horizon Analog Devices is expected to generate 2.52 times more return on investment than EXELON. However, Analog Devices is 2.52 times more volatile than EXELON GENERATION LLC. It trades about 0.16 of its potential returns per unit of risk. EXELON GENERATION LLC is currently generating about 0.07 per unit of risk. If you would invest 21,542 in Analog Devices on November 28, 2024 and sell it today you would earn a total of 1,831 from holding Analog Devices or generate 8.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Analog Devices vs. EXELON GENERATION LLC
Performance |
| Timeline |
| Analog Devices |
| EXELON GENERATION LLC |
Analog Devices and EXELON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Analog Devices and EXELON
The main advantage of trading using opposite Analog Devices and EXELON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Analog Devices position performs unexpectedly, EXELON 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 EXELON will offset losses from the drop in EXELON's long position.| Analog Devices vs. NXP Semiconductors NV | Analog Devices vs. Qualcomm Incorporated | Analog Devices vs. Broadcom | Analog Devices vs. Microchip Technology |
| EXELON vs. Emerson Electric | EXELON vs. Allegion PLC | EXELON vs. EvoAir Holdings | EXELON vs. Aldel Financial II |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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