Correlation Between NVIDIA and EXELON
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By analyzing existing cross correlation between NVIDIA and EXELON P 495, you can compare the effects of market volatilities on NVIDIA and EXELON 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 NVIDIA with a short position of EXELON. Check out your portfolio center. Please also check ongoing floating volatility patterns of NVIDIA and EXELON.
Diversification Opportunities for NVIDIA and EXELON
Pay attention - limited upside
The 3 months correlation between NVIDIA and EXELON is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding NVIDIA and EXELON P 495 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXELON P 495 and NVIDIA 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 NVIDIA are associated (or correlated) with EXELON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXELON P 495 has no effect on the direction of NVIDIA i.e., NVIDIA and EXELON go up and down completely randomly.
Pair Corralation between NVIDIA and EXELON
Given the investment horizon of 90 days NVIDIA is expected to generate 29.05 times less return on investment than EXELON. But when comparing it to its historical volatility, NVIDIA is 37.51 times less risky than EXELON. It trades about 0.14 of its potential returns per unit of risk. EXELON P 495 is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 10,032 in EXELON P 495 on August 24, 2024 and sell it today you would earn a total of 15.00 from holding EXELON P 495 or generate 0.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 84.58% |
| Values | Daily Returns |
NVIDIA vs. EXELON P 495
Performance |
| Timeline |
| NVIDIA |
| EXELON P 495 |
NVIDIA and EXELON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NVIDIA and EXELON
The main advantage of trading using opposite NVIDIA and EXELON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NVIDIA position performs unexpectedly, EXELON 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 EXELON will offset losses from the drop in EXELON's long position.| NVIDIA vs. Intel | NVIDIA vs. Taiwan Semiconductor Manufacturing | NVIDIA vs. Marvell Technology Group | NVIDIA vs. Micron Technology |
| EXELON vs. AEP TEX INC | EXELON vs. US BANK NATIONAL | EXELON vs. Dupont De Nemours | EXELON vs. The Travelers Companies |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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