Correlation Between NYSE Composite and ENTERGY
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By analyzing existing cross correlation between NYSE Composite and ENTERGY TEX INC, you can compare the effects of market volatilities on NYSE Composite and ENTERGY 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 NYSE Composite with a short position of ENTERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and ENTERGY.
Diversification Opportunities for NYSE Composite and ENTERGY
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and ENTERGY is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and ENTERGY TEX INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENTERGY TEX INC and NYSE Composite 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 NYSE Composite are associated (or correlated) with ENTERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENTERGY TEX INC has no effect on the direction of NYSE Composite i.e., NYSE Composite and ENTERGY go up and down completely randomly.
Pair Corralation between NYSE Composite and ENTERGY
Assuming the 90 days trading horizon NYSE Composite is expected to generate 84.2 times less return on investment than ENTERGY. But when comparing it to its historical volatility, NYSE Composite is 124.14 times less risky than ENTERGY. It trades about 0.11 of its potential returns per unit of risk. ENTERGY TEX INC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 9,542 in ENTERGY TEX INC on August 31, 2024 and sell it today you would earn a total of 90.00 from holding ENTERGY TEX INC or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 77.27% |
| Values | Daily Returns |
NYSE Composite vs. ENTERGY TEX INC
Performance |
| Timeline |
NYSE Composite and ENTERGY Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
ENTERGY TEX INC
Pair trading matchups for ENTERGY
Pair Trading with NYSE Composite and ENTERGY
The main advantage of trading using opposite NYSE Composite and ENTERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, ENTERGY 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 ENTERGY will offset losses from the drop in ENTERGY's long position.| NYSE Composite vs. Nextplat Corp | NYSE Composite vs. Qualys Inc | NYSE Composite vs. Cadence Design Systems | NYSE Composite vs. Asure Software |
| ENTERGY vs. AEP TEX INC | ENTERGY vs. US BANK NATIONAL | ENTERGY vs. International Business Machines | ENTERGY vs. Intel |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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