Correlation Between Multilaser Industrial and Duke Energy
Can any of the company-specific risk be diversified away by investing in both Multilaser Industrial and Duke 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 Multilaser Industrial and Duke Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multilaser Industrial SA and Duke Energy, you can compare the effects of market volatilities on Multilaser Industrial and Duke 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 Multilaser Industrial with a short position of Duke Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multilaser Industrial and Duke Energy.
Diversification Opportunities for Multilaser Industrial and Duke Energy
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Multilaser and Duke is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Multilaser Industrial SA and Duke Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duke Energy and Multilaser Industrial 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 Multilaser Industrial SA are associated (or correlated) with Duke Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duke Energy has no effect on the direction of Multilaser Industrial i.e., Multilaser Industrial and Duke Energy go up and down completely randomly.
Pair Corralation between Multilaser Industrial and Duke Energy
Assuming the 90 days trading horizon Multilaser Industrial SA is expected to under-perform the Duke Energy. In addition to that, Multilaser Industrial is 2.51 times more volatile than Duke Energy. It trades about -0.05 of its total potential returns per unit of risk. Duke Energy is currently generating about 0.12 per unit of volatility. If you would invest 45,776 in Duke Energy on September 14, 2024 and sell it today you would earn a total of 20,069 from holding Duke Energy or generate 43.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 88.8% |
| Values | Daily Returns |
Multilaser Industrial SA vs. Duke Energy
Performance |
| Timeline |
| Multilaser Industrial |
| Duke Energy |
Multilaser Industrial and Duke Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multilaser Industrial and Duke Energy
The main advantage of trading using opposite Multilaser Industrial and Duke Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multilaser Industrial position performs unexpectedly, Duke 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 Duke Energy will offset losses from the drop in Duke Energy's long position.| Multilaser Industrial vs. Intelbras SA | Multilaser Industrial vs. Razen SA | Multilaser Industrial vs. Pet Center Comrcio | Multilaser Industrial vs. Locaweb Servios de |
| Duke Energy vs. G2D Investments | Duke Energy vs. Iron Mountain Incorporated | Duke Energy vs. GX AI TECH | Duke Energy vs. Take Two Interactive Software |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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