Correlation Between 00108WAF7 and Nokia
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By analyzing existing cross correlation between AEP TEX INC and Nokia 6625 percent, you can compare the effects of market volatilities on 00108WAF7 and Nokia 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 Nokia. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and Nokia.
Diversification Opportunities for 00108WAF7 and Nokia
Significant diversification
The 3 months correlation between 00108WAF7 and Nokia is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC and Nokia 6625 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nokia 6625 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 Nokia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nokia 6625 percent has no effect on the direction of 00108WAF7 i.e., 00108WAF7 and Nokia go up and down completely randomly.
Pair Corralation between 00108WAF7 and Nokia
Assuming the 90 days trading horizon AEP TEX INC is expected to under-perform the Nokia. In addition to that, 00108WAF7 is 6.66 times more volatile than Nokia 6625 percent. It trades about -0.05 of its total potential returns per unit of risk. Nokia 6625 percent is currently generating about 0.05 per unit of volatility. If you would invest 10,318 in Nokia 6625 percent on August 31, 2024 and sell it today you would earn a total of 63.00 from holding Nokia 6625 percent or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 71.43% |
| Values | Daily Returns |
AEP TEX INC vs. Nokia 6625 percent
Performance |
| Timeline |
| AEP TEX INC |
| Nokia 6625 percent |
00108WAF7 and Nokia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00108WAF7 and Nokia
The main advantage of trading using opposite 00108WAF7 and Nokia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 position performs unexpectedly, Nokia 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 Nokia will offset losses from the drop in Nokia's long position.| 00108WAF7 vs. Asure Software | 00108WAF7 vs. Casio Computer Co | 00108WAF7 vs. Haverty Furniture Companies | 00108WAF7 vs. SL Green Realty |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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