Correlation Between Duke Energy and US Wind
Can any of the company-specific risk be diversified away by investing in both Duke Energy and US Wind 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 US Wind into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duke Energy and US Wind Farming, you can compare the effects of market volatilities on Duke Energy and US Wind 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 US Wind. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duke Energy and US Wind.
Diversification Opportunities for Duke Energy and US Wind
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Duke and USWF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Duke Energy and US Wind Farming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Wind Farming 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 US Wind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Wind Farming has no effect on the direction of Duke Energy i.e., Duke Energy and US Wind go up and down completely randomly.
Pair Corralation between Duke Energy and US Wind
If you would invest 11,470 in Duke Energy on September 3, 2024 and sell it today you would earn a total of 235.00 from holding Duke Energy or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Duke Energy vs. US Wind Farming
Performance |
| Timeline |
| Duke Energy |
| US Wind Farming |
Duke Energy and US Wind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duke Energy and US Wind
The main advantage of trading using opposite Duke Energy and US Wind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duke Energy position performs unexpectedly, US Wind 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 US Wind will offset losses from the drop in US Wind's long position.| Duke Energy vs. Consolidated Edison | Duke Energy vs. Dominion Energy | Duke Energy vs. American Electric Power | Duke Energy vs. Nextera Energy |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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