Correlation Between Red Cat and 693304AW7
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By analyzing existing cross correlation between Red Cat Holdings and PECO ENERGY 39, you can compare the effects of market volatilities on Red Cat and 693304AW7 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 693304AW7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Red Cat and 693304AW7.
Diversification Opportunities for Red Cat and 693304AW7
Very good diversification
The 3 months correlation between Red and 693304AW7 is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Red Cat Holdings and PECO ENERGY 39 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PECO ENERGY 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 693304AW7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PECO ENERGY has no effect on the direction of Red Cat i.e., Red Cat and 693304AW7 go up and down completely randomly.
Pair Corralation between Red Cat and 693304AW7
Given the investment horizon of 90 days Red Cat Holdings is expected to generate 6.38 times more return on investment than 693304AW7. However, Red Cat is 6.38 times more volatile than PECO ENERGY 39. It trades about 0.21 of its potential returns per unit of risk. PECO ENERGY 39 is currently generating about -0.05 per unit of risk. If you would invest 67.00 in Red Cat Holdings on August 28, 2024 and sell it today you would earn a total of 894.00 from holding Red Cat Holdings or generate 1334.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 64.59% |
| Values | Daily Returns |
Red Cat Holdings vs. PECO ENERGY 39
Performance |
| Timeline |
| Red Cat Holdings |
| PECO ENERGY |
Red Cat and 693304AW7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Red Cat and 693304AW7
The main advantage of trading using opposite Red Cat and 693304AW7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Red Cat position performs unexpectedly, 693304AW7 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 693304AW7 will offset losses from the drop in 693304AW7's long position.The idea behind Red Cat Holdings and PECO ENERGY 39 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 693304AW7 vs. AEP TEX INC | 693304AW7 vs. US BANK NATIONAL | 693304AW7 vs. Dupont De Nemours | 693304AW7 vs. The Travelers Companies |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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