Correlation Between Trade Desk and Duke Energy
Can any of the company-specific risk be diversified away by investing in both Trade Desk and Duke Energy at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Trade Desk and Duke Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Trade Desk and Duke Energy, you can compare the effects of market volatilities on Trade Desk and Duke Energy 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 Trade Desk with a short position of Duke Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trade Desk and Duke Energy.
Diversification Opportunities for Trade Desk and Duke Energy
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Trade and Duke is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding The Trade Desk and Duke Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duke Energy and Trade Desk 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 The Trade Desk are associated (or correlated) with Duke Energy. 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 has no effect on the direction of Trade Desk i.e., Trade Desk and Duke Energy go up and down completely randomly.
Pair Corralation between Trade Desk and Duke Energy
Assuming the 90 days trading horizon The Trade Desk is expected to generate 1.95 times more return on investment than Duke Energy. However, Trade Desk is 1.95 times more volatile than Duke Energy. It trades about 0.12 of its potential returns per unit of risk. Duke Energy is currently generating about 0.12 per unit of risk. If you would invest 377.00 in The Trade Desk on September 14, 2024 and sell it today you would earn a total of 430.00 from holding The Trade Desk or generate 114.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 88.8% |
| Values | Daily Returns |
The Trade Desk vs. Duke Energy
Performance |
| Timeline |
| Trade Desk |
| Duke Energy |
Trade Desk and Duke Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trade Desk and Duke Energy
The main advantage of trading using opposite Trade Desk and Duke Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trade Desk position performs unexpectedly, Duke Energy 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 Duke Energy will offset losses from the drop in Duke Energy's long position.| Trade Desk vs. ServiceNow | Trade Desk vs. Uber Technologies | Trade Desk vs. Shopify | Trade Desk vs. Autodesk |
| Duke Energy vs. G2D Investments | Duke Energy vs. Iron Mountain Incorporated | Duke Energy vs. GX AI TECH | Duke Energy vs. Take Two Interactive Software |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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