Correlation Between Cboe UK and Plug Power
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By analyzing existing cross correlation between Cboe UK Consumer and Plug Power, you can compare the effects of market volatilities on Cboe UK and Plug Power 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 Cboe UK with a short position of Plug Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Plug Power.
Diversification Opportunities for Cboe UK and Plug Power
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cboe and Plug is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and Plug Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plug Power and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with Plug Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plug Power has no effect on the direction of Cboe UK i.e., Cboe UK and Plug Power go up and down completely randomly.
Pair Corralation between Cboe UK and Plug Power
Assuming the 90 days trading horizon Cboe UK is expected to generate 4.13 times less return on investment than Plug Power. But when comparing it to its historical volatility, Cboe UK Consumer is 7.71 times less risky than Plug Power. It trades about 0.32 of its potential returns per unit of risk. Plug Power is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 198.00 in Plug Power on September 12, 2024 and sell it today you would earn a total of 49.00 from holding Plug Power or generate 24.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cboe UK Consumer vs. Plug Power
Performance |
| Timeline |
Cboe UK and Plug Power Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Plug Power
Pair trading matchups for Plug Power
Pair Trading with Cboe UK and Plug Power
The main advantage of trading using opposite Cboe UK and Plug Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, Plug Power 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 Plug Power will offset losses from the drop in Plug Power's long position.| Cboe UK vs. Central Asia Metals | Cboe UK vs. Gaztransport et Technigaz | Cboe UK vs. Park Hotels Resorts | Cboe UK vs. Addtech |
| Plug Power vs. Hilton Food Group | Plug Power vs. Roebuck Food Group | Plug Power vs. GoldMining | Plug Power vs. Cornish Metals |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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