Correlation Between Enlight Renewable and Duke Energy
Can any of the company-specific risk be diversified away by investing in both Enlight Renewable 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 Enlight Renewable and Duke Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enlight Renewable Energy and Duke Energy Corp, you can compare the effects of market volatilities on Enlight Renewable 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 Enlight Renewable with a short position of Duke Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enlight Renewable and Duke Energy.
Diversification Opportunities for Enlight Renewable and Duke Energy
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enlight and Duke is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Enlight Renewable Energy and Duke Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duke Energy Corp and Enlight Renewable 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 Enlight Renewable Energy 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 Corp has no effect on the direction of Enlight Renewable i.e., Enlight Renewable and Duke Energy go up and down completely randomly.
Pair Corralation between Enlight Renewable and Duke Energy
Given the investment horizon of 90 days Enlight Renewable Energy is expected to generate 6.82 times more return on investment than Duke Energy. However, Enlight Renewable is 6.82 times more volatile than Duke Energy Corp. It trades about 0.01 of its potential returns per unit of risk. Duke Energy Corp is currently generating about -0.11 per unit of risk. If you would invest 1,600 in Enlight Renewable Energy on August 24, 2024 and sell it today you would earn a total of 1.00 from holding Enlight Renewable Energy or generate 0.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enlight Renewable Energy vs. Duke Energy Corp
Performance |
| Timeline |
| Enlight Renewable Energy |
| Duke Energy Corp |
Enlight Renewable and Duke Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enlight Renewable and Duke Energy
The main advantage of trading using opposite Enlight Renewable and Duke Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enlight Renewable 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.| Enlight Renewable vs. Marchex | Enlight Renewable vs. Organic Sales and | Enlight Renewable vs. BorgWarner | Enlight Renewable vs. Global E Online |
| Duke Energy vs. Southern Co | Duke Energy vs. DTE Energy Co | Duke Energy vs. CMS Energy Corp | Duke Energy vs. CMS Energy Corp |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |