Correlation Between 00108WAF7 and EQUINOR
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By analyzing existing cross correlation between AEP TEX INC and EQUINOR ASA, you can compare the effects of market volatilities on 00108WAF7 and EQUINOR 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 EQUINOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and EQUINOR.
Diversification Opportunities for 00108WAF7 and EQUINOR
Average diversification
The 3 months correlation between 00108WAF7 and EQUINOR is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC and EQUINOR ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EQUINOR ASA 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 EQUINOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EQUINOR ASA has no effect on the direction of 00108WAF7 i.e., 00108WAF7 and EQUINOR go up and down completely randomly.
Pair Corralation between 00108WAF7 and EQUINOR
Assuming the 90 days trading horizon AEP TEX INC is expected to under-perform the EQUINOR. In addition to that, 00108WAF7 is 9.95 times more volatile than EQUINOR ASA. It trades about -0.05 of its total potential returns per unit of risk. EQUINOR ASA is currently generating about -0.16 per unit of volatility. If you would invest 9,296 in EQUINOR ASA on August 31, 2024 and sell it today you would lose (152.00) from holding EQUINOR ASA or give up 1.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 68.18% |
| Values | Daily Returns |
AEP TEX INC vs. EQUINOR ASA
Performance |
| Timeline |
| AEP TEX INC |
| EQUINOR ASA |
00108WAF7 and EQUINOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00108WAF7 and EQUINOR
The main advantage of trading using opposite 00108WAF7 and EQUINOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 position performs unexpectedly, EQUINOR 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 EQUINOR will offset losses from the drop in EQUINOR's long position.| 00108WAF7 vs. Asure Software | 00108WAF7 vs. Casio Computer Co | 00108WAF7 vs. Haverty Furniture Companies | 00108WAF7 vs. SL Green Realty |
| EQUINOR vs. AEP TEX INC | EQUINOR vs. US BANK NATIONAL | EQUINOR vs. Bank of America | EQUINOR vs. GE Aerospace |
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.
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