Correlation Between National Grid and TXNM Energy,
Can any of the company-specific risk be diversified away by investing in both National Grid 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 National Grid and TXNM Energy, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Grid PLC and TXNM Energy,, you can compare the effects of market volatilities on National Grid 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 National Grid with a short position of TXNM Energy,. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Grid and TXNM Energy,.
Diversification Opportunities for National Grid and TXNM Energy,
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between National and TXNM is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding National Grid PLC and TXNM Energy, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TXNM Energy, and National Grid 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 National Grid PLC 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 National Grid i.e., National Grid and TXNM Energy, go up and down completely randomly.
Pair Corralation between National Grid and TXNM Energy,
Considering the 90-day investment horizon National Grid PLC is expected to generate 1.34 times more return on investment than TXNM Energy,. However, National Grid is 1.34 times more volatile than TXNM Energy,. It trades about 0.03 of its potential returns per unit of risk. TXNM Energy, is currently generating about 0.02 per unit of risk. If you would invest 5,343 in National Grid PLC on August 24, 2024 and sell it today you would earn a total of 968.00 from holding National Grid PLC or generate 18.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Grid PLC vs. TXNM Energy,
Performance |
| Timeline |
| National Grid PLC |
| TXNM Energy, |
National Grid and TXNM Energy, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Grid and TXNM Energy,
The main advantage of trading using opposite National Grid and TXNM Energy, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Grid 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.| National Grid vs. Southern Company | National Grid vs. Edison International | National Grid vs. American Electric Power | National Grid vs. Duke Energy |
| TXNM Energy, vs. Korea Electric Power | TXNM Energy, vs. Centrais Electricas Brasileiras | TXNM Energy, vs. MGE Energy | TXNM Energy, vs. IDACORP |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |