Correlation Between Brockhaus Capital and Duke Energy
Can any of the company-specific risk be diversified away by investing in both Brockhaus Capital and Duke Energy 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 Brockhaus Capital and Duke Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brockhaus Capital Management and Duke Energy, you can compare the effects of market volatilities on Brockhaus Capital and Duke Energy 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 Brockhaus Capital with a short position of Duke Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brockhaus Capital and Duke Energy.
Diversification Opportunities for Brockhaus Capital and Duke Energy
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Brockhaus and Duke is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Brockhaus Capital Management and Duke Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duke Energy and Brockhaus Capital 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 Brockhaus Capital Management are associated (or correlated) with Duke Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duke Energy has no effect on the direction of Brockhaus Capital i.e., Brockhaus Capital and Duke Energy go up and down completely randomly.
Pair Corralation between Brockhaus Capital and Duke Energy
Assuming the 90 days trading horizon Brockhaus Capital Management is expected to under-perform the Duke Energy. In addition to that, Brockhaus Capital is 1.92 times more volatile than Duke Energy. It trades about -0.08 of its total potential returns per unit of risk. Duke Energy is currently generating about 0.03 per unit of volatility. If you would invest 10,419 in Duke Energy on October 24, 2024 and sell it today you would earn a total of 263.00 from holding Duke Energy or generate 2.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brockhaus Capital Management vs. Duke Energy
Performance |
| Timeline |
| Brockhaus Capital |
| Duke Energy |
Brockhaus Capital and Duke Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brockhaus Capital and Duke Energy
The main advantage of trading using opposite Brockhaus Capital and Duke Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brockhaus Capital position performs unexpectedly, Duke Energy 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 Duke Energy will offset losses from the drop in Duke Energy's long position.| Brockhaus Capital vs. Guangdong Investment Limited | Brockhaus Capital vs. HK Electric Investments | Brockhaus Capital vs. RYANAIR HLDGS ADR | Brockhaus Capital vs. PennantPark Investment |
| Duke Energy vs. Brockhaus Capital Management | Duke Energy vs. Easy Software AG | Duke Energy vs. GBS Software AG | Duke Energy vs. Axway Software SA |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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