Correlation Between 00108WAF7 and KROGER
Specify exactly 2 symbols:
By analyzing existing cross correlation between AEP TEX INC and KROGER 35 percent, you can compare the effects of market volatilities on 00108WAF7 and KROGER 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 KROGER. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and KROGER.
Diversification Opportunities for 00108WAF7 and KROGER
Good diversification
The 3 months correlation between 00108WAF7 and KROGER is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC and KROGER 35 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KROGER 35 percent 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 KROGER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KROGER 35 percent has no effect on the direction of 00108WAF7 i.e., 00108WAF7 and KROGER go up and down completely randomly.
Pair Corralation between 00108WAF7 and KROGER
Assuming the 90 days trading horizon AEP TEX INC is expected to generate 308.02 times more return on investment than KROGER. However, 00108WAF7 is 308.02 times more volatile than KROGER 35 percent. It trades about 0.13 of its potential returns per unit of risk. KROGER 35 percent is currently generating about 0.01 per unit of risk. If you would invest 7,450 in AEP TEX INC on September 12, 2024 and sell it today you would earn a total of 218.00 from holding AEP TEX INC or generate 2.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 65.68% |
| Values | Daily Returns |
AEP TEX INC vs. KROGER 35 percent
Performance |
| Timeline |
| AEP TEX INC |
| KROGER 35 percent |
00108WAF7 and KROGER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00108WAF7 and KROGER
The main advantage of trading using opposite 00108WAF7 and KROGER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 position performs unexpectedly, KROGER 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 KROGER will offset losses from the drop in KROGER's long position.The idea behind AEP TEX INC and KROGER 35 percent 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.| KROGER vs. AEP TEX INC | KROGER vs. US BANK NATIONAL | KROGER vs. Applied Blockchain | KROGER vs. BigBearai Holdings |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |