Correlation Between Niagara Mohawk and EDP -
Can any of the company-specific risk be diversified away by investing in both Niagara Mohawk and EDP - 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 Niagara Mohawk and EDP - into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Niagara Mohawk Power and EDP Energias, you can compare the effects of market volatilities on Niagara Mohawk and EDP - 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 Niagara Mohawk with a short position of EDP -. Check out your portfolio center. Please also check ongoing floating volatility patterns of Niagara Mohawk and EDP -.
Diversification Opportunities for Niagara Mohawk and EDP -
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Niagara and EDP is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Niagara Mohawk Power and EDP Energias in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EDP Energias and Niagara Mohawk 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 Niagara Mohawk Power are associated (or correlated) with EDP -. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EDP Energias has no effect on the direction of Niagara Mohawk i.e., Niagara Mohawk and EDP - go up and down completely randomly.
Pair Corralation between Niagara Mohawk and EDP -
Assuming the 90 days horizon Niagara Mohawk Power is expected to generate 0.58 times more return on investment than EDP -. However, Niagara Mohawk Power is 1.71 times less risky than EDP -. It trades about 0.08 of its potential returns per unit of risk. EDP Energias is currently generating about -0.03 per unit of risk. If you would invest 5,542 in Niagara Mohawk Power on August 30, 2024 and sell it today you would earn a total of 658.00 from holding Niagara Mohawk Power or generate 11.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.83% |
| Values | Daily Returns |
Niagara Mohawk Power vs. EDP Energias
Performance |
| Timeline |
| Niagara Mohawk Power |
| EDP Energias |
Niagara Mohawk and EDP - Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Niagara Mohawk and EDP -
The main advantage of trading using opposite Niagara Mohawk and EDP - positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Niagara Mohawk position performs unexpectedly, EDP - 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 EDP - will offset losses from the drop in EDP -'s long position.| Niagara Mohawk vs. Pintec Technology Holdings | Niagara Mohawk vs. Exchange Bankshares | Niagara Mohawk vs. Barings BDC | Niagara Mohawk vs. Artisan Partners Asset |
| EDP - vs. CP ALL Public | EDP - vs. Niagara Mohawk Power | EDP - vs. The Siam Cement | EDP - vs. Oaktree Capital Group |
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.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |