Correlation Between 00108WAF7 and CABKSM
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By analyzing existing cross correlation between AEP TEX INC and CABKSM 6208 18 JAN 29, you can compare the effects of market volatilities on 00108WAF7 and CABKSM 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 CABKSM. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and CABKSM.
Diversification Opportunities for 00108WAF7 and CABKSM
Good diversification
The 3 months correlation between 00108WAF7 and CABKSM is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC and CABKSM 6208 18 JAN 29 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CABKSM 6208 18 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 CABKSM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CABKSM 6208 18 has no effect on the direction of 00108WAF7 i.e., 00108WAF7 and CABKSM go up and down completely randomly.
Pair Corralation between 00108WAF7 and CABKSM
Assuming the 90 days trading horizon AEP TEX INC is expected to under-perform the CABKSM. In addition to that, 00108WAF7 is 13.31 times more volatile than CABKSM 6208 18 JAN 29. It trades about -0.04 of its total potential returns per unit of risk. CABKSM 6208 18 JAN 29 is currently generating about -0.03 per unit of volatility. If you would invest 10,305 in CABKSM 6208 18 JAN 29 on August 30, 2024 and sell it today you would lose (18.00) from holding CABKSM 6208 18 JAN 29 or give up 0.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.24% |
| Values | Daily Returns |
AEP TEX INC vs. CABKSM 6208 18 JAN 29
Performance |
| Timeline |
| AEP TEX INC |
| CABKSM 6208 18 |
00108WAF7 and CABKSM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00108WAF7 and CABKSM
The main advantage of trading using opposite 00108WAF7 and CABKSM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 position performs unexpectedly, CABKSM 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 CABKSM will offset losses from the drop in CABKSM's long position.| 00108WAF7 vs. Bluerock Homes Trust | 00108WAF7 vs. PennantPark Floating Rate | 00108WAF7 vs. EastGroup Properties | 00108WAF7 vs. NETGEAR |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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