Correlation Between Expand Energy and 85855CAA8
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By analyzing existing cross correlation between Expand Energy and STLA 1711 29 JAN 27, you can compare the effects of market volatilities on Expand Energy and 85855CAA8 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 Expand Energy with a short position of 85855CAA8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expand Energy and 85855CAA8.
Diversification Opportunities for Expand Energy and 85855CAA8
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Expand and 85855CAA8 is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Expand Energy and STLA 1711 29 JAN 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STLA 1711 29 and Expand 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 Expand Energy are associated (or correlated) with 85855CAA8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STLA 1711 29 has no effect on the direction of Expand Energy i.e., Expand Energy and 85855CAA8 go up and down completely randomly.
Pair Corralation between Expand Energy and 85855CAA8
Assuming the 90 days horizon Expand Energy is expected to generate 2.82 times more return on investment than 85855CAA8. However, Expand Energy is 2.82 times more volatile than STLA 1711 29 JAN 27. It trades about 0.04 of its potential returns per unit of risk. STLA 1711 29 JAN 27 is currently generating about 0.0 per unit of risk. If you would invest 7,665 in Expand Energy on October 23, 2024 and sell it today you would earn a total of 2,467 from holding Expand Energy or generate 32.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 65.25% |
| Values | Daily Returns |
Expand Energy vs. STLA 1711 29 JAN 27
Performance |
| Timeline |
| Expand Energy |
| STLA 1711 29 |
Expand Energy and 85855CAA8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expand Energy and 85855CAA8
The main advantage of trading using opposite Expand Energy and 85855CAA8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expand Energy position performs unexpectedly, 85855CAA8 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 85855CAA8 will offset losses from the drop in 85855CAA8's long position.| Expand Energy vs. Amkor Technology | Expand Energy vs. National Beverage Corp | Expand Energy vs. Fomento Economico Mexicano | Expand Energy vs. Radcom |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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