Correlation Between Cboe UK and 88 Energy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Cboe UK Consumer and 88 Energy, you can compare the effects of market volatilities on Cboe UK and 88 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 Cboe UK with a short position of 88 Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and 88 Energy.
Diversification Opportunities for Cboe UK and 88 Energy
Excellent diversification
The 3 months correlation between Cboe and 88E is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and 88 Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 88 Energy 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 88 Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 88 Energy has no effect on the direction of Cboe UK i.e., Cboe UK and 88 Energy go up and down completely randomly.
Pair Corralation between Cboe UK and 88 Energy
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.51 times more return on investment than 88 Energy. However, Cboe UK Consumer is 1.95 times less risky than 88 Energy. It trades about 0.42 of its potential returns per unit of risk. 88 Energy is currently generating about -0.16 per unit of risk. If you would invest 2,929,287 in Cboe UK Consumer on August 26, 2024 and sell it today you would earn a total of 293,429 from holding Cboe UK Consumer or generate 10.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cboe UK Consumer vs. 88 Energy
Performance |
| Timeline |
Cboe UK and 88 Energy Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
88 Energy
Pair trading matchups for 88 Energy
Pair Trading with Cboe UK and 88 Energy
The main advantage of trading using opposite Cboe UK and 88 Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, 88 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 88 Energy will offset losses from the drop in 88 Energy's long position.| Cboe UK vs. TR Property Investment | Cboe UK vs. Kinnevik Investment AB | Cboe UK vs. Federal Realty Investment | Cboe UK vs. Playtech Plc |
| 88 Energy vs. Tata Steel Limited | 88 Energy vs. Elmos Semiconductor SE | 88 Energy vs. Samsung Electronics Co | 88 Energy vs. Impax Environmental Markets |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |