Correlation Between CTEEP Companhia and Duke Energy

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both CTEEP Companhia 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 CTEEP Companhia and Duke Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CTEEP Companhia and Duke Energy, you can compare the effects of market volatilities on CTEEP Companhia 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 CTEEP Companhia with a short position of Duke Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTEEP Companhia and Duke Energy.

Diversification Opportunities for CTEEP Companhia and Duke Energy

-0.2
  Correlation Coefficient

Good diversification

The 3 months correlation between CTEEP and Duke is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding CTEEP Companhia and Duke Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duke Energy and CTEEP Companhia 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 CTEEP Companhia 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 CTEEP Companhia i.e., CTEEP Companhia and Duke Energy go up and down completely randomly.

Pair Corralation between CTEEP Companhia and Duke Energy

Assuming the 90 days trading horizon CTEEP Companhia is expected to generate 1.22 times less return on investment than Duke Energy. But when comparing it to its historical volatility, CTEEP Companhia is 1.62 times less risky than Duke Energy. It trades about 0.05 of its potential returns per unit of risk. Duke Energy is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  54,680  in Duke Energy on September 5, 2024 and sell it today you would earn a total of  13,630  from holding Duke Energy or generate 24.93% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy83.6%
ValuesDaily Returns

CTEEP Companhia  vs.  Duke Energy

 Performance 
       Timeline  
CTEEP Companhia 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days CTEEP Companhia has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, CTEEP Companhia is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.
Duke Energy 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Duke Energy are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong forward-looking signals, Duke Energy is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

CTEEP Companhia and Duke Energy Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with CTEEP Companhia and Duke Energy

The main advantage of trading using opposite CTEEP Companhia and Duke Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTEEP Companhia 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.
The idea behind CTEEP Companhia and Duke Energy 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.
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.

Other Complementary Tools

Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
CEOs Directory
Screen CEOs from public companies around the world