Correlation Between Philip Morris and ENTERGY
Specify exactly 2 symbols:
By analyzing existing cross correlation between Philip Morris International and ENTERGY P NEW, you can compare the effects of market volatilities on Philip Morris 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 Philip Morris with a short position of ENTERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Philip Morris and ENTERGY.
Diversification Opportunities for Philip Morris and ENTERGY
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Philip and ENTERGY is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Philip Morris International and ENTERGY P NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENTERGY P NEW and Philip Morris 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 Philip Morris International 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 P NEW has no effect on the direction of Philip Morris i.e., Philip Morris and ENTERGY go up and down completely randomly.
Pair Corralation between Philip Morris and ENTERGY
Allowing for the 90-day total investment horizon Philip Morris International is expected to generate 7.53 times more return on investment than ENTERGY. However, Philip Morris is 7.53 times more volatile than ENTERGY P NEW. It trades about 0.07 of its potential returns per unit of risk. ENTERGY P NEW is currently generating about 0.04 per unit of risk. If you would invest 12,432 in Philip Morris International on September 3, 2024 and sell it today you would earn a total of 874.00 from holding Philip Morris International or generate 7.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.75% |
| Values | Daily Returns |
Philip Morris International vs. ENTERGY P NEW
Performance |
| Timeline |
| Philip Morris Intern |
| ENTERGY P NEW |
Philip Morris and ENTERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Philip Morris and ENTERGY
The main advantage of trading using opposite Philip Morris and ENTERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Philip Morris 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.| Philip Morris vs. British American Tobacco | Philip Morris vs. Universal | Philip Morris vs. Imperial Brands PLC | Philip Morris vs. Altria Group |
| ENTERGY vs. RLX Technology | ENTERGY vs. Diageo PLC ADR | ENTERGY vs. Philip Morris International | ENTERGY 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |