Correlation Between Massachusetts Electric and Public Service
Can any of the company-specific risk be diversified away by investing in both Massachusetts Electric and Public Service 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 Massachusetts Electric and Public Service into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massachusetts Electric and Public Service, you can compare the effects of market volatilities on Massachusetts Electric and Public Service 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 Massachusetts Electric with a short position of Public Service. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massachusetts Electric and Public Service.
Diversification Opportunities for Massachusetts Electric and Public Service
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Massachusetts and Public is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Massachusetts Electric and Public Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Service and Massachusetts Electric 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 Massachusetts Electric are associated (or correlated) with Public Service. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Service has no effect on the direction of Massachusetts Electric i.e., Massachusetts Electric and Public Service go up and down completely randomly.
Pair Corralation between Massachusetts Electric and Public Service
If you would invest (100.00) in Massachusetts Electric on October 11, 2024 and sell it today you would earn a total of 100.00 from holding Massachusetts Electric or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Massachusetts Electric vs. Public Service
Performance |
| Timeline |
| Massachusetts Electric |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Public Service |
Massachusetts Electric and Public Service Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massachusetts Electric and Public Service
The main advantage of trading using opposite Massachusetts Electric and Public Service positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massachusetts Electric position performs unexpectedly, Public Service 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 Public Service will offset losses from the drop in Public Service's long position.| Massachusetts Electric vs. Omni Health | Massachusetts Electric vs. Regeneron Pharmaceuticals | Massachusetts Electric vs. Valneva SE ADR | Massachusetts Electric vs. Univest Pennsylvania |
| Public Service vs. WK Kellogg Co | Public Service vs. Copperbank Resources Corp | Public Service vs. Astral Foods Limited | Public Service vs. Ingredion Incorporated |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |