Correlation Between Alliant Energy and Proficient Auto
Can any of the company-specific risk be diversified away by investing in both Alliant Energy and Proficient Auto 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 Alliant Energy and Proficient Auto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alliant Energy Corp and Proficient Auto Logistics,, you can compare the effects of market volatilities on Alliant Energy and Proficient Auto 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 Alliant Energy with a short position of Proficient Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliant Energy and Proficient Auto.
Diversification Opportunities for Alliant Energy and Proficient Auto
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Alliant and Proficient is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Alliant Energy Corp and Proficient Auto Logistics, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proficient Auto Logi and Alliant 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 Alliant Energy Corp are associated (or correlated) with Proficient Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proficient Auto Logi has no effect on the direction of Alliant Energy i.e., Alliant Energy and Proficient Auto go up and down completely randomly.
Pair Corralation between Alliant Energy and Proficient Auto
Considering the 90-day investment horizon Alliant Energy Corp is expected to generate 0.34 times more return on investment than Proficient Auto. However, Alliant Energy Corp is 2.95 times less risky than Proficient Auto. It trades about 0.03 of its potential returns per unit of risk. Proficient Auto Logistics, is currently generating about -0.05 per unit of risk. If you would invest 5,021 in Alliant Energy Corp on October 13, 2024 and sell it today you would earn a total of 645.00 from holding Alliant Energy Corp or generate 12.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 34.48% |
| Values | Daily Returns |
Alliant Energy Corp vs. Proficient Auto Logistics,
Performance |
| Timeline |
| Alliant Energy Corp |
| Proficient Auto Logi |
Alliant Energy and Proficient Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliant Energy and Proficient Auto
The main advantage of trading using opposite Alliant Energy and Proficient Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliant Energy position performs unexpectedly, Proficient Auto 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 Proficient Auto will offset losses from the drop in Proficient Auto's long position.| Alliant Energy vs. DTE Energy | Alliant Energy vs. Ameren Corp | Alliant Energy vs. CenterPoint Energy | Alliant Energy vs. Pinnacle West Capital |
| Proficient Auto vs. Funko Inc | Proficient Auto vs. Summit Therapeutics PLC | Proficient Auto vs. BRP Inc | Proficient Auto vs. Academy Sports Outdoors |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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