Correlation Between Red Cat and ENTERGY
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By analyzing existing cross correlation between Red Cat Holdings and ENTERGY ARK INC, you can compare the effects of market volatilities on Red Cat 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 Red Cat with a short position of ENTERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Red Cat and ENTERGY.
Diversification Opportunities for Red Cat and ENTERGY
Very good diversification
The 3 months correlation between Red and ENTERGY is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Red Cat Holdings and ENTERGY ARK INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENTERGY ARK INC 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 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 ARK INC has no effect on the direction of Red Cat i.e., Red Cat and ENTERGY go up and down completely randomly.
Pair Corralation between Red Cat and ENTERGY
Given the investment horizon of 90 days Red Cat Holdings is expected to generate 3.12 times more return on investment than ENTERGY. However, Red Cat is 3.12 times more volatile than ENTERGY ARK INC. It trades about 0.11 of its potential returns per unit of risk. ENTERGY ARK INC is currently generating about 0.02 per unit of risk. If you would invest 92.00 in Red Cat Holdings on August 31, 2024 and sell it today you would earn a total of 835.00 from holding Red Cat Holdings or generate 907.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 46.75% |
| Values | Daily Returns |
Red Cat Holdings vs. ENTERGY ARK INC
Performance |
| Timeline |
| Red Cat Holdings |
| ENTERGY ARK INC |
Red Cat and ENTERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Red Cat and ENTERGY
The main advantage of trading using opposite Red Cat and ENTERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Red Cat 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.| Red Cat vs. Quantum Computing | Red Cat vs. Rigetti Computing | Red Cat vs. D Wave Quantum | Red Cat vs. AstroNova |
| 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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