Correlation Between Red Cat and CONSOLIDATED
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By analyzing existing cross correlation between Red Cat Holdings and CONSOLIDATED EDISON N, you can compare the effects of market volatilities on Red Cat and CONSOLIDATED 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 Red Cat with a short position of CONSOLIDATED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Red Cat and CONSOLIDATED.
Diversification Opportunities for Red Cat and CONSOLIDATED
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Red and CONSOLIDATED is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Red Cat Holdings and CONSOLIDATED EDISON N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONSOLIDATED EDISON and Red Cat 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 Red Cat Holdings are associated (or correlated) with CONSOLIDATED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONSOLIDATED EDISON has no effect on the direction of Red Cat i.e., Red Cat and CONSOLIDATED go up and down completely randomly.
Pair Corralation between Red Cat and CONSOLIDATED
Given the investment horizon of 90 days Red Cat is expected to generate 14.94 times less return on investment than CONSOLIDATED. But when comparing it to its historical volatility, Red Cat Holdings is 16.88 times less risky than CONSOLIDATED. It trades about 0.11 of its potential returns per unit of risk. CONSOLIDATED EDISON N is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 8,933 in CONSOLIDATED EDISON N on August 31, 2024 and sell it today you would lose (568.00) from holding CONSOLIDATED EDISON N or give up 6.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 55.77% |
| Values | Daily Returns |
Red Cat Holdings vs. CONSOLIDATED EDISON N
Performance |
| Timeline |
| Red Cat Holdings |
| CONSOLIDATED EDISON |
Red Cat and CONSOLIDATED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Red Cat and CONSOLIDATED
The main advantage of trading using opposite Red Cat and CONSOLIDATED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Red Cat position performs unexpectedly, CONSOLIDATED 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 CONSOLIDATED will offset losses from the drop in CONSOLIDATED's long position.| Red Cat vs. Quantum Computing | Red Cat vs. Rigetti Computing | Red Cat vs. D Wave Quantum | Red Cat vs. AstroNova |
| CONSOLIDATED vs. AEP TEX INC | CONSOLIDATED vs. US BANK NATIONAL | CONSOLIDATED vs. International Business Machines | CONSOLIDATED 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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