Correlation Between Gap, and AETNA
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By analyzing existing cross correlation between The Gap, and AETNA INC NEW, you can compare the effects of market volatilities on Gap, and AETNA 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 Gap, with a short position of AETNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gap, and AETNA.
Diversification Opportunities for Gap, and AETNA
Very good diversification
The 3 months correlation between Gap, and AETNA is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding The Gap, and AETNA INC NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AETNA INC NEW and Gap, 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 The Gap, are associated (or correlated) with AETNA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AETNA INC NEW has no effect on the direction of Gap, i.e., Gap, and AETNA go up and down completely randomly.
Pair Corralation between Gap, and AETNA
Considering the 90-day investment horizon The Gap, is expected to generate 11.68 times more return on investment than AETNA. However, Gap, is 11.68 times more volatile than AETNA INC NEW. It trades about 0.17 of its potential returns per unit of risk. AETNA INC NEW is currently generating about -0.25 per unit of risk. If you would invest 2,146 in The Gap, on August 31, 2024 and sell it today you would earn a total of 276.00 from holding The Gap, or generate 12.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 45.45% |
| Values | Daily Returns |
The Gap, vs. AETNA INC NEW
Performance |
| Timeline |
| Gap, |
| AETNA INC NEW |
Gap, and AETNA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gap, and AETNA
The main advantage of trading using opposite Gap, and AETNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gap, position performs unexpectedly, AETNA 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 AETNA will offset losses from the drop in AETNA's long position.| Gap, vs. SEI Investments | Gap, vs. Corporacion America Airports | Gap, vs. Nasdaq Inc | Gap, vs. Sabra Healthcare REIT |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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