Correlation Between Exelon and Evergy,
Can any of the company-specific risk be diversified away by investing in both Exelon and Evergy, 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 Exelon and Evergy, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exelon and Evergy,, you can compare the effects of market volatilities on Exelon and Evergy, 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 Exelon with a short position of Evergy,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exelon and Evergy,.
Diversification Opportunities for Exelon and Evergy,
Modest diversification
The 3 months correlation between Exelon and Evergy, is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Exelon and Evergy, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evergy, and Exelon 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 Exelon are associated (or correlated) with Evergy,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evergy, has no effect on the direction of Exelon i.e., Exelon and Evergy, go up and down completely randomly.
Pair Corralation between Exelon and Evergy,
Considering the 90-day investment horizon Exelon is expected to generate 5.04 times less return on investment than Evergy,. In addition to that, Exelon is 1.23 times more volatile than Evergy,. It trades about 0.02 of its total potential returns per unit of risk. Evergy, is currently generating about 0.1 per unit of volatility. If you would invest 4,945 in Evergy, on August 27, 2024 and sell it today you would earn a total of 1,481 from holding Evergy, or generate 29.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exelon vs. Evergy,
Performance |
| Timeline |
| Exelon |
| Evergy, |
Exelon and Evergy, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exelon and Evergy,
The main advantage of trading using opposite Exelon and Evergy, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exelon position performs unexpectedly, Evergy, 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 Evergy, will offset losses from the drop in Evergy,'s long position.| Exelon vs. Duke Energy | Exelon vs. Dominion Energy | Exelon vs. Southern Company | Exelon vs. Consolidated Edison |
| Evergy, vs. Dominion Energy | Evergy, vs. Consolidated Edison | Evergy, vs. Eversource Energy | Evergy, vs. FirstEnergy |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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