Correlation Between 00108WAF7 and 36158FAD2
Specify exactly 2 symbols:
By analyzing existing cross correlation between AEP TEX INC and GE GLOBAL INS, you can compare the effects of market volatilities on 00108WAF7 and 36158FAD2 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 36158FAD2. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and 36158FAD2.
Diversification Opportunities for 00108WAF7 and 36158FAD2
Good diversification
The 3 months correlation between 00108WAF7 and 36158FAD2 is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC and GE GLOBAL INS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GE GLOBAL INS 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 36158FAD2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GE GLOBAL INS has no effect on the direction of 00108WAF7 i.e., 00108WAF7 and 36158FAD2 go up and down completely randomly.
Pair Corralation between 00108WAF7 and 36158FAD2
Assuming the 90 days trading horizon AEP TEX INC is expected to generate 63.24 times more return on investment than 36158FAD2. However, 00108WAF7 is 63.24 times more volatile than GE GLOBAL INS. It trades about 0.1 of its potential returns per unit of risk. GE GLOBAL INS is currently generating about -0.02 per unit of risk. If you would invest 7,255 in AEP TEX INC on September 2, 2024 and sell it today you would earn a total of 413.00 from holding AEP TEX INC or generate 5.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 44.94% |
| Values | Daily Returns |
AEP TEX INC vs. GE GLOBAL INS
Performance |
| Timeline |
| AEP TEX INC |
| GE GLOBAL INS |
00108WAF7 and 36158FAD2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00108WAF7 and 36158FAD2
The main advantage of trading using opposite 00108WAF7 and 36158FAD2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 position performs unexpectedly, 36158FAD2 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 36158FAD2 will offset losses from the drop in 36158FAD2's long position.| 00108WAF7 vs. Zhihu Inc ADR | 00108WAF7 vs. Playtika Holding Corp | 00108WAF7 vs. Thor Industries | 00108WAF7 vs. Dana Inc |
| 36158FAD2 vs. AEP TEX INC | 36158FAD2 vs. US BANK NATIONAL | 36158FAD2 vs. American Express | 36158FAD2 vs. Chevron Corp |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |