Correlation Between SENERELECSPGDR REGS and Duke Energy
Can any of the company-specific risk be diversified away by investing in both SENERELECSPGDR REGS 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 SENERELECSPGDR REGS and Duke Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SENERELECSPGDR REGS 1 and Duke Energy, you can compare the effects of market volatilities on SENERELECSPGDR REGS 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 SENERELECSPGDR REGS with a short position of Duke Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of SENERELECSPGDR REGS and Duke Energy.
Diversification Opportunities for SENERELECSPGDR REGS and Duke Energy
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SENERELECSPGDR and Duke is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding SENERELECSPGDR REGS 1 and Duke Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duke Energy and SENERELECSPGDR REGS 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 SENERELECSPGDR REGS 1 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 SENERELECSPGDR REGS i.e., SENERELECSPGDR REGS and Duke Energy go up and down completely randomly.
Pair Corralation between SENERELECSPGDR REGS and Duke Energy
Assuming the 90 days trading horizon SENERELECSPGDR REGS 1 is expected to under-perform the Duke Energy. In addition to that, SENERELECSPGDR REGS is 2.33 times more volatile than Duke Energy. It trades about -0.08 of its total potential returns per unit of risk. Duke Energy is currently generating about -0.04 per unit of volatility. If you would invest 10,506 in Duke Energy on September 13, 2024 and sell it today you would lose (106.00) from holding Duke Energy or give up 1.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SENERELECSPGDR REGS 1 vs. Duke Energy
Performance |
| Timeline |
| SENERELECSPGDR REGS |
| Duke Energy |
SENERELECSPGDR REGS and Duke Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SENERELECSPGDR REGS and Duke Energy
The main advantage of trading using opposite SENERELECSPGDR REGS and Duke Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SENERELECSPGDR REGS 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.| SENERELECSPGDR REGS vs. PLAY2CHILL SA ZY | SENERELECSPGDR REGS vs. Columbia Sportswear | SENERELECSPGDR REGS vs. USWE SPORTS AB | SENERELECSPGDR REGS vs. Playa Hotels Resorts |
| Duke Energy vs. WEC Energy Group | Duke Energy vs. ENDESA ADR 12 | Duke Energy vs. CMS Energy | Duke Energy vs. Terna Rete |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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