Correlation Between 00108WAF7 and FEDEX
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By analyzing existing cross correlation between AEP TEX INC and FEDEX P 44, you can compare the effects of market volatilities on 00108WAF7 and FEDEX 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 FEDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and FEDEX.
Diversification Opportunities for 00108WAF7 and FEDEX
Average diversification
The 3 months correlation between 00108WAF7 and FEDEX is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC and FEDEX P 44 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEDEX P 44 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 FEDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEDEX P 44 has no effect on the direction of 00108WAF7 i.e., 00108WAF7 and FEDEX go up and down completely randomly.
Pair Corralation between 00108WAF7 and FEDEX
Assuming the 90 days trading horizon AEP TEX INC is expected to generate 37.42 times more return on investment than FEDEX. However, 00108WAF7 is 37.42 times more volatile than FEDEX P 44. It trades about 0.09 of its potential returns per unit of risk. FEDEX P 44 is currently generating about 0.02 per unit of risk. If you would invest 7,210 in AEP TEX INC on September 1, 2024 and sell it today you would lose (121.00) from holding AEP TEX INC or give up 1.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 78.07% |
| Values | Daily Returns |
AEP TEX INC vs. FEDEX P 44
Performance |
| Timeline |
| AEP TEX INC |
| FEDEX P 44 |
00108WAF7 and FEDEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00108WAF7 and FEDEX
The main advantage of trading using opposite 00108WAF7 and FEDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 position performs unexpectedly, FEDEX 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 FEDEX will offset losses from the drop in FEDEX's long position.| 00108WAF7 vs. AKITA Drilling | 00108WAF7 vs. GameStop Corp | 00108WAF7 vs. Contagious Gaming | 00108WAF7 vs. Awilco Drilling PLC |
| FEDEX vs. Molson Coors Brewing | FEDEX vs. Ambev SA ADR | FEDEX vs. Elmos Semiconductor SE | FEDEX vs. Analog Devices |
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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