Correlation Between Duke Energy and Terna Rete
Can any of the company-specific risk be diversified away by investing in both Duke Energy and Terna Rete 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 Duke Energy and Terna Rete into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duke Energy and Terna Rete, you can compare the effects of market volatilities on Duke Energy and Terna Rete 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 Duke Energy with a short position of Terna Rete. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duke Energy and Terna Rete.
Diversification Opportunities for Duke Energy and Terna Rete
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Duke and Terna is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Duke Energy and Terna Rete in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Terna Rete and Duke Energy 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 Duke Energy are associated (or correlated) with Terna Rete. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Terna Rete has no effect on the direction of Duke Energy i.e., Duke Energy and Terna Rete go up and down completely randomly.
Pair Corralation between Duke Energy and Terna Rete
Assuming the 90 days trading horizon Duke Energy is expected to under-perform the Terna Rete. In addition to that, Duke Energy is 1.09 times more volatile than Terna Rete. It trades about -0.04 of its total potential returns per unit of risk. Terna Rete is currently generating about 0.1 per unit of volatility. If you would invest 758.00 in Terna Rete on September 13, 2024 and sell it today you would earn a total of 14.00 from holding Terna Rete or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duke Energy vs. Terna Rete
Performance |
| Timeline |
| Duke Energy |
| Terna Rete |
Duke Energy and Terna Rete Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duke Energy and Terna Rete
The main advantage of trading using opposite Duke Energy and Terna Rete positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duke Energy position performs unexpectedly, Terna Rete 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 Terna Rete will offset losses from the drop in Terna Rete's long position.| Duke Energy vs. WEC Energy Group | Duke Energy vs. ENDESA ADR 12 | Duke Energy vs. CMS Energy | Duke Energy vs. Terna Rete |
| Terna Rete vs. TITAN MACHINERY | Terna Rete vs. Singapore Reinsurance | Terna Rete vs. REVO INSURANCE SPA | Terna Rete vs. Dairy Farm International |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |