Correlation Between Casio Computer and NEXTERA
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By analyzing existing cross correlation between Casio Computer Co and NEXTERA ENERGY CAPITAL, you can compare the effects of market volatilities on Casio Computer and NEXTERA 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 Casio Computer with a short position of NEXTERA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Casio Computer and NEXTERA.
Diversification Opportunities for Casio Computer and NEXTERA
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Casio and NEXTERA is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Casio Computer Co and NEXTERA ENERGY CAPITAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEXTERA ENERGY CAPITAL and Casio Computer 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 Casio Computer Co are associated (or correlated) with NEXTERA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEXTERA ENERGY CAPITAL has no effect on the direction of Casio Computer i.e., Casio Computer and NEXTERA go up and down completely randomly.
Pair Corralation between Casio Computer and NEXTERA
Assuming the 90 days horizon Casio Computer Co is expected to under-perform the NEXTERA. In addition to that, Casio Computer is 3.53 times more volatile than NEXTERA ENERGY CAPITAL. It trades about -0.01 of its total potential returns per unit of risk. NEXTERA ENERGY CAPITAL is currently generating about 0.01 per unit of volatility. If you would invest 8,464 in NEXTERA ENERGY CAPITAL on August 27, 2024 and sell it today you would earn a total of 62.00 from holding NEXTERA ENERGY CAPITAL or generate 0.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.56% |
| Values | Daily Returns |
Casio Computer Co vs. NEXTERA ENERGY CAPITAL
Performance |
| Timeline |
| Casio Computer |
| NEXTERA ENERGY CAPITAL |
Casio Computer and NEXTERA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Casio Computer and NEXTERA
The main advantage of trading using opposite Casio Computer and NEXTERA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Casio Computer position performs unexpectedly, NEXTERA 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 NEXTERA will offset losses from the drop in NEXTERA's long position.| Casio Computer vs. Apple Inc | Casio Computer vs. Xiaomi Corp | Casio Computer vs. Samsung Electronics Co | Casio Computer vs. LG Display Co |
| NEXTERA vs. AEP TEX INC | NEXTERA vs. US BANK NATIONAL | NEXTERA vs. Dupont De Nemours | NEXTERA vs. The Travelers Companies |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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