Correlation Between BKV and 00108WAF7
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By analyzing existing cross correlation between BKV Corporation and AEP TEX INC, you can compare the effects of market volatilities on BKV and 00108WAF7 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 BKV with a short position of 00108WAF7. Check out your portfolio center. Please also check ongoing floating volatility patterns of BKV and 00108WAF7.
Diversification Opportunities for BKV and 00108WAF7
Significant diversification
The 3 months correlation between BKV and 00108WAF7 is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding BKV Corp. and AEP TEX INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEP TEX INC and BKV 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 BKV Corporation are associated (or correlated) with 00108WAF7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEP TEX INC has no effect on the direction of BKV i.e., BKV and 00108WAF7 go up and down completely randomly.
Pair Corralation between BKV and 00108WAF7
Considering the 90-day investment horizon BKV is expected to generate 54.05 times less return on investment than 00108WAF7. But when comparing it to its historical volatility, BKV Corporation is 76.34 times less risky than 00108WAF7. It trades about 0.18 of its potential returns per unit of risk. AEP TEX INC is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 7,427 in AEP TEX INC on September 23, 2024 and sell it today you would earn a total of 241.00 from holding AEP TEX INC or generate 3.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 19.62% |
| Values | Daily Returns |
BKV Corp. vs. AEP TEX INC
Performance |
| Timeline |
| BKV Corporation |
| AEP TEX INC |
BKV and 00108WAF7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BKV and 00108WAF7
The main advantage of trading using opposite BKV and 00108WAF7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BKV position performs unexpectedly, 00108WAF7 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 00108WAF7 will offset losses from the drop in 00108WAF7's long position.| BKV vs. Antero Resources Corp | BKV vs. Empire Petroleum Corp | BKV vs. Permian Resources | BKV vs. SandRidge Energy |
| 00108WAF7 vs. US BANK NATIONAL | 00108WAF7 vs. BKV Corporation | 00108WAF7 vs. Bristol Myers Squibb | 00108WAF7 vs. Zenvia Inc |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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