Correlation Between FactSet Research and ENTERGY
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By analyzing existing cross correlation between FactSet Research Systems and ENTERGY TEX INC, you can compare the effects of market volatilities on FactSet Research and ENTERGY 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 FactSet Research with a short position of ENTERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of FactSet Research and ENTERGY.
Diversification Opportunities for FactSet Research and ENTERGY
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FactSet and ENTERGY is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding FactSet Research Systems and ENTERGY TEX INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENTERGY TEX INC and FactSet Research 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 FactSet Research Systems are associated (or correlated) with ENTERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENTERGY TEX INC has no effect on the direction of FactSet Research i.e., FactSet Research and ENTERGY go up and down completely randomly.
Pair Corralation between FactSet Research and ENTERGY
Considering the 90-day investment horizon FactSet Research is expected to generate 97.97 times less return on investment than ENTERGY. But when comparing it to its historical volatility, FactSet Research Systems is 65.43 times less risky than ENTERGY. It trades about 0.05 of its potential returns per unit of risk. ENTERGY TEX INC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 9,542 in ENTERGY TEX INC on August 31, 2024 and sell it today you would earn a total of 90.00 from holding ENTERGY TEX INC or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 77.27% |
| Values | Daily Returns |
FactSet Research Systems vs. ENTERGY TEX INC
Performance |
| Timeline |
| FactSet Research Systems |
| ENTERGY TEX INC |
FactSet Research and ENTERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FactSet Research and ENTERGY
The main advantage of trading using opposite FactSet Research and ENTERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FactSet Research position performs unexpectedly, ENTERGY 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 ENTERGY will offset losses from the drop in ENTERGY's long position.| FactSet Research vs. Dun Bradstreet Holdings | FactSet Research vs. Moodys | FactSet Research vs. MSCI Inc | FactSet Research vs. Intercontinental Exchange |
| ENTERGY vs. AEP TEX INC | ENTERGY vs. US BANK NATIONAL | ENTERGY vs. International Business Machines | ENTERGY vs. Intel |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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