Correlation Between 00108WAF7 and ENTERGY
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By analyzing existing cross correlation between AEP TEX INC and ENTERGY TEX INC, you can compare the effects of market volatilities on 00108WAF7 and ENTERGY 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 ENTERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and ENTERGY.
Diversification Opportunities for 00108WAF7 and ENTERGY
Significant diversification
The 3 months correlation between 00108WAF7 and ENTERGY is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC and ENTERGY TEX INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENTERGY TEX INC 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 ENTERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENTERGY TEX INC has no effect on the direction of 00108WAF7 i.e., 00108WAF7 and ENTERGY go up and down completely randomly.
Pair Corralation between 00108WAF7 and ENTERGY
Assuming the 90 days trading horizon AEP TEX INC is expected to generate 162.68 times more return on investment than ENTERGY. However, 00108WAF7 is 162.68 times more volatile than ENTERGY TEX INC. It trades about 0.08 of its potential returns per unit of risk. ENTERGY TEX INC is currently generating about -0.01 per unit of risk. If you would invest 7,480 in AEP TEX INC on August 28, 2024 and sell it today you would earn a total of 741.00 from holding AEP TEX INC or generate 9.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 84.21% |
| Values | Daily Returns |
AEP TEX INC vs. ENTERGY TEX INC
Performance |
| Timeline |
| AEP TEX INC |
| ENTERGY TEX INC |
00108WAF7 and ENTERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00108WAF7 and ENTERGY
The main advantage of trading using opposite 00108WAF7 and ENTERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 position performs unexpectedly, ENTERGY 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 ENTERGY will offset losses from the drop in ENTERGY's long position.| 00108WAF7 vs. US BANK NATIONAL | 00108WAF7 vs. Dupont De Nemours | 00108WAF7 vs. The Travelers Companies | 00108WAF7 vs. Exxon Mobil Corp |
| ENTERGY vs. AEP TEX INC | ENTERGY vs. US BANK NATIONAL | ENTERGY vs. Dupont De Nemours | ENTERGY vs. The Travelers Companies |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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