Correlation Between GMO Internet and EXELON
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By analyzing existing cross correlation between GMO Internet and EXELON GENERATION LLC, you can compare the effects of market volatilities on GMO Internet and EXELON 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 GMO Internet with a short position of EXELON. Check out your portfolio center. Please also check ongoing floating volatility patterns of GMO Internet and EXELON.
Diversification Opportunities for GMO Internet and EXELON
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between GMO and EXELON is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding GMO Internet and EXELON GENERATION LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXELON GENERATION LLC and GMO Internet 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 GMO Internet are associated (or correlated) with EXELON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXELON GENERATION LLC has no effect on the direction of GMO Internet i.e., GMO Internet and EXELON go up and down completely randomly.
Pair Corralation between GMO Internet and EXELON
Assuming the 90 days horizon GMO Internet is expected to generate 5.24 times less return on investment than EXELON. But when comparing it to its historical volatility, GMO Internet is 7.87 times less risky than EXELON. It trades about 0.22 of its potential returns per unit of risk. EXELON GENERATION LLC is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 9,679 in EXELON GENERATION LLC on November 3, 2024 and sell it today you would earn a total of 460.00 from holding EXELON GENERATION LLC or generate 4.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
GMO Internet vs. EXELON GENERATION LLC
Performance |
| Timeline |
| GMO Internet |
| EXELON GENERATION LLC |
GMO Internet and EXELON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GMO Internet and EXELON
The main advantage of trading using opposite GMO Internet and EXELON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GMO Internet position performs unexpectedly, EXELON 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 EXELON will offset losses from the drop in EXELON's long position.| GMO Internet vs. Cable One | GMO Internet vs. Charter Communications | GMO Internet vs. Frontier Communications Parent | GMO Internet vs. Liberty Broadband Srs |
| EXELON vs. SBM Offshore NV | EXELON vs. Lincoln Electric Holdings | EXELON vs. Sable Offshore Corp | EXELON vs. China Tontine Wines |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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