Correlation Between Datadog and EXELON
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By analyzing existing cross correlation between Datadog and EXELON GENERATION LLC, you can compare the effects of market volatilities on Datadog and EXELON 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 Datadog with a short position of EXELON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datadog and EXELON.
Diversification Opportunities for Datadog and EXELON
Excellent diversification
The 3 months correlation between Datadog and EXELON is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Datadog and EXELON GENERATION LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXELON GENERATION LLC and Datadog 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 Datadog are associated (or correlated) with EXELON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXELON GENERATION LLC has no effect on the direction of Datadog i.e., Datadog and EXELON go up and down completely randomly.
Pair Corralation between Datadog and EXELON
Given the investment horizon of 90 days Datadog is expected to generate 0.95 times more return on investment than EXELON. However, Datadog is 1.06 times less risky than EXELON. It trades about 0.23 of its potential returns per unit of risk. EXELON GENERATION LLC is currently generating about -0.02 per unit of risk. If you would invest 11,148 in Datadog on September 2, 2024 and sell it today you would earn a total of 4,127 from holding Datadog or generate 37.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 78.13% |
| Values | Daily Returns |
Datadog vs. EXELON GENERATION LLC
Performance |
| Timeline |
| Datadog |
| EXELON GENERATION LLC |
Datadog and EXELON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Datadog and EXELON
The main advantage of trading using opposite Datadog and EXELON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datadog position performs unexpectedly, EXELON 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 EXELON will offset losses from the drop in EXELON's long position.The idea behind Datadog and EXELON GENERATION LLC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| EXELON vs. AEP TEX INC | EXELON vs. US BANK NATIONAL | EXELON vs. International Business Machines | EXELON vs. Intel |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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