Correlation Between Cboe UK and ITM Power
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By analyzing existing cross correlation between Cboe UK Consumer and ITM Power, you can compare the effects of market volatilities on Cboe UK and ITM 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 ITM Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and ITM Power.
Diversification Opportunities for Cboe UK and ITM Power
Very good diversification
The 3 months correlation between Cboe and ITM is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and ITM Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ITM 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 ITM Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ITM Power has no effect on the direction of Cboe UK i.e., Cboe UK and ITM Power go up and down completely randomly.
Pair Corralation between Cboe UK and ITM Power
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.26 times more return on investment than ITM Power. However, Cboe UK Consumer is 3.9 times less risky than ITM Power. It trades about 0.07 of its potential returns per unit of risk. ITM Power is currently generating about -0.04 per unit of risk. If you would invest 2,456,446 in Cboe UK Consumer on November 27, 2024 and sell it today you would earn a total of 780,503 from holding Cboe UK Consumer or generate 31.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.55% |
| Values | Daily Returns |
Cboe UK Consumer vs. ITM Power
Performance |
| Timeline |
Cboe UK and ITM Power Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
ITM Power
Pair trading matchups for ITM Power
Pair Trading with Cboe UK and ITM Power
The main advantage of trading using opposite Cboe UK and ITM Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, ITM 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 ITM Power will offset losses from the drop in ITM Power's long position.| Cboe UK vs. International Biotechnology Trust | Cboe UK vs. Clean Power Hydrogen | Cboe UK vs. Ashtead Technology Holdings | Cboe UK vs. Aptitude Software Group |
| ITM Power vs. Zoom Video Communications | ITM Power vs. Infrastrutture Wireless Italiane | ITM Power vs. Batm Advanced Communications | ITM Power vs. Monster Beverage Corp |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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