Correlation Between Black Hills and REPUBLIC
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By analyzing existing cross correlation between Black Hills and REPUBLIC SVCS INC, you can compare the effects of market volatilities on Black Hills and REPUBLIC 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 Black Hills with a short position of REPUBLIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Black Hills and REPUBLIC.
Diversification Opportunities for Black Hills and REPUBLIC
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Black and REPUBLIC is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Black Hills and REPUBLIC SVCS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REPUBLIC SVCS INC and Black Hills 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 Black Hills are associated (or correlated) with REPUBLIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REPUBLIC SVCS INC has no effect on the direction of Black Hills i.e., Black Hills and REPUBLIC go up and down completely randomly.
Pair Corralation between Black Hills and REPUBLIC
Considering the 90-day investment horizon Black Hills is expected to generate 2.98 times more return on investment than REPUBLIC. However, Black Hills is 2.98 times more volatile than REPUBLIC SVCS INC. It trades about 0.14 of its potential returns per unit of risk. REPUBLIC SVCS INC is currently generating about -0.04 per unit of risk. If you would invest 5,246 in Black Hills on September 5, 2024 and sell it today you would earn a total of 1,054 from holding Black Hills or generate 20.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.8% |
| Values | Daily Returns |
Black Hills vs. REPUBLIC SVCS INC
Performance |
| Timeline |
| Black Hills |
| REPUBLIC SVCS INC |
Black Hills and REPUBLIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Black Hills and REPUBLIC
The main advantage of trading using opposite Black Hills and REPUBLIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Black Hills position performs unexpectedly, REPUBLIC 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 REPUBLIC will offset losses from the drop in REPUBLIC's long position.| Black Hills vs. NorthWestern | Black Hills vs. Avista | Black Hills vs. Otter Tail | Black Hills vs. Companhia Paranaense de |
| REPUBLIC vs. Montauk Renewables | REPUBLIC vs. Boston Beer | REPUBLIC vs. Black Hills | REPUBLIC vs. Constellation Brands Class |
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.
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