Correlation Between 00108WAF7 and CONSUMERS
Specify exactly 2 symbols:
By analyzing existing cross correlation between AEP TEX INC and CONSUMERS ENERGY 325, you can compare the effects of market volatilities on 00108WAF7 and CONSUMERS 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 CONSUMERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and CONSUMERS.
Diversification Opportunities for 00108WAF7 and CONSUMERS
Good diversification
The 3 months correlation between 00108WAF7 and CONSUMERS is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC and CONSUMERS ENERGY 325 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONSUMERS ENERGY 325 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 CONSUMERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONSUMERS ENERGY 325 has no effect on the direction of 00108WAF7 i.e., 00108WAF7 and CONSUMERS go up and down completely randomly.
Pair Corralation between 00108WAF7 and CONSUMERS
Assuming the 90 days trading horizon AEP TEX INC is expected to generate 1.56 times more return on investment than CONSUMERS. However, 00108WAF7 is 1.56 times more volatile than CONSUMERS ENERGY 325. It trades about 0.13 of its potential returns per unit of risk. CONSUMERS ENERGY 325 is currently generating about 0.08 per unit of risk. If you would invest 7,450 in AEP TEX INC on September 14, 2024 and sell it today you would earn a total of 218.00 from holding AEP TEX INC or generate 2.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.47% |
| Values | Daily Returns |
AEP TEX INC vs. CONSUMERS ENERGY 325
Performance |
| Timeline |
| AEP TEX INC |
| CONSUMERS ENERGY 325 |
00108WAF7 and CONSUMERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00108WAF7 and CONSUMERS
The main advantage of trading using opposite 00108WAF7 and CONSUMERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 position performs unexpectedly, CONSUMERS 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 CONSUMERS will offset losses from the drop in CONSUMERS's long position.| 00108WAF7 vs. Pearson PLC ADR | 00108WAF7 vs. Zane Interactive Publishing | 00108WAF7 vs. Afya | 00108WAF7 vs. PennantPark Investment |
| CONSUMERS vs. AEP TEX INC | CONSUMERS vs. US BANK NATIONAL | CONSUMERS vs. PayPal Holdings | CONSUMERS vs. Alphabet Inc Class C |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |