Correlation Between Credit Acceptance and Duke Energy
Can any of the company-specific risk be diversified away by investing in both Credit Acceptance 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 Credit Acceptance and Duke Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Acceptance and Duke Energy, you can compare the effects of market volatilities on Credit Acceptance 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 Credit Acceptance with a short position of Duke Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Acceptance and Duke Energy.
Diversification Opportunities for Credit Acceptance and Duke Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Credit and Duke is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Credit Acceptance and Duke Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duke Energy and Credit Acceptance 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 Credit Acceptance 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 Credit Acceptance i.e., Credit Acceptance and Duke Energy go up and down completely randomly.
Pair Corralation between Credit Acceptance and Duke Energy
If you would invest 63,756 in Duke Energy on September 12, 2024 and sell it today you would earn a total of 3,451 from holding Duke Energy or generate 5.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Credit Acceptance vs. Duke Energy
Performance |
| Timeline |
| Credit Acceptance |
| Duke Energy |
Credit Acceptance and Duke Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Acceptance and Duke Energy
The main advantage of trading using opposite Credit Acceptance and Duke Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Acceptance 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.| Credit Acceptance vs. Paycom Software | Credit Acceptance vs. Zoom Video Communications | Credit Acceptance vs. Apartment Investment and | Credit Acceptance vs. Charter Communications |
| Duke Energy vs. United Rentals | Duke Energy vs. Bemobi Mobile Tech | Duke Energy vs. Autohome | Duke Energy vs. Take Two Interactive Software |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |