Correlation Between 00108WAF7 and Frontier
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By analyzing existing cross correlation between AEP TEX INC and Frontier Florida 686, you can compare the effects of market volatilities on 00108WAF7 and Frontier 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 Frontier. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and Frontier.
Diversification Opportunities for 00108WAF7 and Frontier
Modest diversification
The 3 months correlation between 00108WAF7 and Frontier is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC and Frontier Florida 686 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frontier Florida 686 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 Frontier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frontier Florida 686 has no effect on the direction of 00108WAF7 i.e., 00108WAF7 and Frontier go up and down completely randomly.
Pair Corralation between 00108WAF7 and Frontier
Assuming the 90 days trading horizon AEP TEX INC is expected to under-perform the Frontier. In addition to that, 00108WAF7 is 1.28 times more volatile than Frontier Florida 686. It trades about -0.02 of its total potential returns per unit of risk. Frontier Florida 686 is currently generating about -0.01 per unit of volatility. If you would invest 9,639 in Frontier Florida 686 on December 10, 2024 and sell it today you would lose (364.00) from holding Frontier Florida 686 or give up 3.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 81.86% |
| Values | Daily Returns |
AEP TEX INC vs. Frontier Florida 686
Performance |
| Timeline |
| AEP TEX INC |
| Frontier Florida 686 |
00108WAF7 and Frontier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00108WAF7 and Frontier
The main advantage of trading using opposite 00108WAF7 and Frontier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 position performs unexpectedly, Frontier 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 Frontier will offset losses from the drop in Frontier's long position.| 00108WAF7 vs. Marti Technologies | ||
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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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