Correlation Between Astar and AMEREN
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By analyzing existing cross correlation between Astar and AMEREN ILL 415, you can compare the effects of market volatilities on Astar and AMEREN 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 Astar with a short position of AMEREN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astar and AMEREN.
Diversification Opportunities for Astar and AMEREN
Weak diversification
The 3 months correlation between Astar and AMEREN is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Astar and AMEREN ILL 415 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMEREN ILL 415 and Astar 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 Astar are associated (or correlated) with AMEREN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMEREN ILL 415 has no effect on the direction of Astar i.e., Astar and AMEREN go up and down completely randomly.
Pair Corralation between Astar and AMEREN
Assuming the 90 days trading horizon Astar is expected to generate 2.86 times less return on investment than AMEREN. In addition to that, Astar is 1.92 times more volatile than AMEREN ILL 415. It trades about 0.03 of its total potential returns per unit of risk. AMEREN ILL 415 is currently generating about 0.17 per unit of volatility. If you would invest 8,373 in AMEREN ILL 415 on October 20, 2024 and sell it today you would earn a total of 880.00 from holding AMEREN ILL 415 or generate 10.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 45.45% |
| Values | Daily Returns |
Astar vs. AMEREN ILL 415
Performance |
| Timeline |
| Astar |
| AMEREN ILL 415 |
Astar and AMEREN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astar and AMEREN
The main advantage of trading using opposite Astar and AMEREN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astar position performs unexpectedly, AMEREN 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 AMEREN will offset losses from the drop in AMEREN's long position.The idea behind Astar and AMEREN ILL 415 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| AMEREN vs. AEP TEX INC | AMEREN vs. US BANK NATIONAL | AMEREN vs. KULR Technology Group | AMEREN vs. DocuSign |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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