Correlation Between Red Cat and 26442UAA2
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By analyzing existing cross correlation between Red Cat Holdings and DUKE ENERGY PROGRESS, you can compare the effects of market volatilities on Red Cat and 26442UAA2 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 26442UAA2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Red Cat and 26442UAA2.
Diversification Opportunities for Red Cat and 26442UAA2
Pay attention - limited upside
The 3 months correlation between Red and 26442UAA2 is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Red Cat Holdings and DUKE ENERGY PROGRESS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DUKE ENERGY PROGRESS 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 26442UAA2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DUKE ENERGY PROGRESS has no effect on the direction of Red Cat i.e., Red Cat and 26442UAA2 go up and down completely randomly.
Pair Corralation between Red Cat and 26442UAA2
Given the investment horizon of 90 days Red Cat Holdings is expected to generate 30.16 times more return on investment than 26442UAA2. However, Red Cat is 30.16 times more volatile than DUKE ENERGY PROGRESS. It trades about 0.16 of its potential returns per unit of risk. DUKE ENERGY PROGRESS is currently generating about 0.01 per unit of risk. If you would invest 89.00 in Red Cat Holdings on August 27, 2024 and sell it today you would earn a total of 808.00 from holding Red Cat Holdings or generate 907.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 85.89% |
| Values | Daily Returns |
Red Cat Holdings vs. DUKE ENERGY PROGRESS
Performance |
| Timeline |
| Red Cat Holdings |
| DUKE ENERGY PROGRESS |
Red Cat and 26442UAA2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Red Cat and 26442UAA2
The main advantage of trading using opposite Red Cat and 26442UAA2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Red Cat position performs unexpectedly, 26442UAA2 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 26442UAA2 will offset losses from the drop in 26442UAA2's long position.| Red Cat vs. Quantum Computing | Red Cat vs. Rigetti Computing | Red Cat vs. D Wave Quantum | Red Cat vs. AstroNova |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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