Correlation Between Genie Energy and TXNM Energy,
Can any of the company-specific risk be diversified away by investing in both Genie Energy and TXNM Energy, 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 Genie Energy and TXNM Energy, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genie Energy and TXNM Energy,, you can compare the effects of market volatilities on Genie Energy and TXNM Energy, 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 Genie Energy with a short position of TXNM Energy,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genie Energy and TXNM Energy,.
Diversification Opportunities for Genie Energy and TXNM Energy,
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Genie and TXNM is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Genie Energy and TXNM Energy, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TXNM Energy, and Genie 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 Genie Energy are associated (or correlated) with TXNM Energy,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TXNM Energy, has no effect on the direction of Genie Energy i.e., Genie Energy and TXNM Energy, go up and down completely randomly.
Pair Corralation between Genie Energy and TXNM Energy,
Considering the 90-day investment horizon Genie Energy is expected to generate 2.79 times more return on investment than TXNM Energy,. However, Genie Energy is 2.79 times more volatile than TXNM Energy,. It trades about 0.05 of its potential returns per unit of risk. TXNM Energy, is currently generating about 0.02 per unit of risk. If you would invest 1,014 in Genie Energy on August 28, 2024 and sell it today you would earn a total of 618.00 from holding Genie Energy or generate 60.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genie Energy vs. TXNM Energy,
Performance |
| Timeline |
| Genie Energy |
| TXNM Energy, |
Genie Energy and TXNM Energy, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genie Energy and TXNM Energy,
The main advantage of trading using opposite Genie Energy and TXNM Energy, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genie Energy position performs unexpectedly, TXNM Energy, 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 TXNM Energy, will offset losses from the drop in TXNM Energy,'s long position.| Genie Energy vs. Centrais Electricas Brasileiras | Genie Energy vs. Central Puerto SA | Genie Energy vs. Korea Electric Power | Genie Energy vs. Empresa Distribuidora y |
| TXNM Energy, vs. Afya | TXNM Energy, vs. Zane Interactive Publishing | TXNM Energy, vs. Getty Realty | TXNM Energy, vs. Scholastic |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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