Correlation Between 00108WAF7 and 126307AY3
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By analyzing existing cross correlation between AEP TEX INC and CSC Holdings 75, you can compare the effects of market volatilities on 00108WAF7 and 126307AY3 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 00108WAF7 with a short position of 126307AY3. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and 126307AY3.
Diversification Opportunities for 00108WAF7 and 126307AY3
Good diversification
The 3 months correlation between 00108WAF7 and 126307AY3 is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC and CSC Holdings 75 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSC Holdings 75 and 00108WAF7 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 AEP TEX INC are associated (or correlated) with 126307AY3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSC Holdings 75 has no effect on the direction of 00108WAF7 i.e., 00108WAF7 and 126307AY3 go up and down completely randomly.
Pair Corralation between 00108WAF7 and 126307AY3
Assuming the 90 days trading horizon AEP TEX INC is expected to generate 2.95 times more return on investment than 126307AY3. However, 00108WAF7 is 2.95 times more volatile than CSC Holdings 75. It trades about 0.13 of its potential returns per unit of risk. CSC Holdings 75 is currently generating about 0.04 per unit of risk. If you would invest 7,882 in AEP TEX INC on September 3, 2024 and sell it today you would earn a total of 339.00 from holding AEP TEX INC or generate 4.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 67.68% |
| Values | Daily Returns |
AEP TEX INC vs. CSC Holdings 75
Performance |
| Timeline |
| AEP TEX INC |
| CSC Holdings 75 |
00108WAF7 and 126307AY3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00108WAF7 and 126307AY3
The main advantage of trading using opposite 00108WAF7 and 126307AY3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 position performs unexpectedly, 126307AY3 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 126307AY3 will offset losses from the drop in 126307AY3's long position.| 00108WAF7 vs. Universal Music Group | 00108WAF7 vs. Pool Corporation | 00108WAF7 vs. Under Armour C | 00108WAF7 vs. Figs Inc |
| 126307AY3 vs. AEP TEX INC | 126307AY3 vs. US BANK NATIONAL | 126307AY3 vs. MetLife | 126307AY3 vs. Jackson Financial |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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