Correlation Between NRG Energy and Simon Worldwide
Can any of the company-specific risk be diversified away by investing in both NRG Energy and Simon Worldwide 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 NRG Energy and Simon Worldwide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NRG Energy and Simon Worldwide, you can compare the effects of market volatilities on NRG Energy and Simon Worldwide 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 NRG Energy with a short position of Simon Worldwide. Check out your portfolio center. Please also check ongoing floating volatility patterns of NRG Energy and Simon Worldwide.
Diversification Opportunities for NRG Energy and Simon Worldwide
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NRG and Simon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NRG Energy and Simon Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simon Worldwide and NRG 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 NRG Energy are associated (or correlated) with Simon Worldwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simon Worldwide has no effect on the direction of NRG Energy i.e., NRG Energy and Simon Worldwide go up and down completely randomly.
Pair Corralation between NRG Energy and Simon Worldwide
If you would invest 8,770 in NRG Energy on August 30, 2024 and sell it today you would earn a total of 1,119 from holding NRG Energy or generate 12.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
NRG Energy vs. Simon Worldwide
Performance |
| Timeline |
| NRG Energy |
| Simon Worldwide |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
NRG Energy and Simon Worldwide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NRG Energy and Simon Worldwide
The main advantage of trading using opposite NRG Energy and Simon Worldwide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NRG Energy position performs unexpectedly, Simon Worldwide 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 Simon Worldwide will offset losses from the drop in Simon Worldwide's long position.| NRG Energy vs. TransAlta Corp | NRG Energy vs. Kenon Holdings | NRG Energy vs. Pampa Energia SA | NRG Energy vs. AGL Energy |
| Simon Worldwide vs. PGE Corp | Simon Worldwide vs. NRG Energy | Simon Worldwide vs. Evolution Gaming Group | Simon Worldwide vs. Boyd Gaming |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |