Correlation Between NRG Energy and 668771AL2
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By analyzing existing cross correlation between NRG Energy and GEN 7125 30 SEP 30, you can compare the effects of market volatilities on NRG Energy and 668771AL2 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 668771AL2. Check out your portfolio center. Please also check ongoing floating volatility patterns of NRG Energy and 668771AL2.
Diversification Opportunities for NRG Energy and 668771AL2
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NRG and 668771AL2 is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding NRG Energy and GEN 7125 30 SEP 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEN 7125 30 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 668771AL2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GEN 7125 30 has no effect on the direction of NRG Energy i.e., NRG Energy and 668771AL2 go up and down completely randomly.
Pair Corralation between NRG Energy and 668771AL2
Considering the 90-day investment horizon NRG Energy is expected to generate 3.98 times more return on investment than 668771AL2. However, NRG Energy is 3.98 times more volatile than GEN 7125 30 SEP 30. It trades about 0.21 of its potential returns per unit of risk. GEN 7125 30 SEP 30 is currently generating about -0.21 per unit of risk. If you would invest 8,805 in NRG Energy on September 4, 2024 and sell it today you would earn a total of 1,135 from holding NRG Energy or generate 12.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
NRG Energy vs. GEN 7125 30 SEP 30
Performance |
| Timeline |
| NRG Energy |
| GEN 7125 30 |
NRG Energy and 668771AL2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NRG Energy and 668771AL2
The main advantage of trading using opposite NRG Energy and 668771AL2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NRG Energy position performs unexpectedly, 668771AL2 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 668771AL2 will offset losses from the drop in 668771AL2's long position.| NRG Energy vs. TransAlta Corp | NRG Energy vs. Kenon Holdings | NRG Energy vs. Pampa Energia SA | NRG Energy vs. AGL Energy |
| 668771AL2 vs. Bridgford Foods | 668771AL2 vs. PepsiCo | 668771AL2 vs. Village Super Market | 668771AL2 vs. Ambev SA ADR |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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