Correlation Between NRG Energy and Under
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By analyzing existing cross correlation between NRG Energy and Under Armour 325, you can compare the effects of market volatilities on NRG Energy and Under 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 Under. Check out your portfolio center. Please also check ongoing floating volatility patterns of NRG Energy and Under.
Diversification Opportunities for NRG Energy and Under
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NRG and Under is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding NRG Energy and Under Armour 325 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Under Armour 325 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 Under. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Under Armour 325 has no effect on the direction of NRG Energy i.e., NRG Energy and Under go up and down completely randomly.
Pair Corralation between NRG Energy and Under
Considering the 90-day investment horizon NRG Energy is expected to generate 3.97 times more return on investment than Under. However, NRG Energy is 3.97 times more volatile than Under Armour 325. It trades about 0.03 of its potential returns per unit of risk. Under Armour 325 is currently generating about -0.18 per unit of risk. If you would invest 9,428 in NRG Energy on September 12, 2024 and sell it today you would earn a total of 120.00 from holding NRG Energy or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
NRG Energy vs. Under Armour 325
Performance |
| Timeline |
| NRG Energy |
| Under Armour 325 |
NRG Energy and Under Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NRG Energy and Under
The main advantage of trading using opposite NRG Energy and Under positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NRG Energy position performs unexpectedly, Under 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 Under will offset losses from the drop in Under's long position.| NRG Energy vs. TransAlta Corp | NRG Energy vs. Kenon Holdings | NRG Energy vs. Pampa Energia SA | NRG Energy vs. AGL Energy |
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 Stocks Directory module to find actively traded stocks across global markets.
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