Correlation Between 00108WAF7 and GENERAL
Specify exactly 2 symbols:
By analyzing existing cross correlation between AEP TEX INC and GENERAL ELEC CAP, you can compare the effects of market volatilities on 00108WAF7 and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and GENERAL.
Diversification Opportunities for 00108WAF7 and GENERAL
Very good diversification
The 3 months correlation between 00108WAF7 and GENERAL is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC and GENERAL ELEC CAP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL ELEC CAP 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL ELEC CAP has no effect on the direction of 00108WAF7 i.e., 00108WAF7 and GENERAL go up and down completely randomly.
Pair Corralation between 00108WAF7 and GENERAL
Assuming the 90 days trading horizon AEP TEX INC is expected to generate 119.3 times more return on investment than GENERAL. However, 00108WAF7 is 119.3 times more volatile than GENERAL ELEC CAP. It trades about 0.13 of its potential returns per unit of risk. GENERAL ELEC CAP is currently generating about 0.02 per unit of risk. If you would invest 7,507 in AEP TEX INC on September 12, 2024 and sell it today you would earn a total of 161.00 from holding AEP TEX INC or generate 2.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 60.87% |
| Values | Daily Returns |
AEP TEX INC vs. GENERAL ELEC CAP
Performance |
| Timeline |
| AEP TEX INC |
| GENERAL ELEC CAP |
00108WAF7 and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00108WAF7 and GENERAL
The main advantage of trading using opposite 00108WAF7 and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.The idea behind AEP TEX INC and GENERAL ELEC CAP pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| GENERAL vs. AEP TEX INC | GENERAL vs. US BANK NATIONAL | GENERAL vs. Recursion Pharmaceuticals | GENERAL vs. SoundHound AI |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |