Correlation Between 00108WAF7 and NSTAR
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By analyzing existing cross correlation between AEP TEX INC and NSTAR ELEC 44, you can compare the effects of market volatilities on 00108WAF7 and NSTAR 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 NSTAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and NSTAR.
Diversification Opportunities for 00108WAF7 and NSTAR
Pay attention - limited upside
The 3 months correlation between 00108WAF7 and NSTAR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC and NSTAR ELEC 44 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NSTAR ELEC 44 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 NSTAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NSTAR ELEC 44 has no effect on the direction of 00108WAF7 i.e., 00108WAF7 and NSTAR go up and down completely randomly.
Pair Corralation between 00108WAF7 and NSTAR
If you would invest 7,816 in AEP TEX INC on September 4, 2024 and sell it today you would earn a total of 405.00 from holding AEP TEX INC or generate 5.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.32% |
| Values | Daily Returns |
AEP TEX INC vs. NSTAR ELEC 44
Performance |
| Timeline |
| AEP TEX INC |
| NSTAR ELEC 44 |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
00108WAF7 and NSTAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00108WAF7 and NSTAR
The main advantage of trading using opposite 00108WAF7 and NSTAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 position performs unexpectedly, NSTAR 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 NSTAR will offset losses from the drop in NSTAR's long position.| 00108WAF7 vs. Getty Realty | 00108WAF7 vs. Fortress Transp Infra | 00108WAF7 vs. Broadstone Net Lease | 00108WAF7 vs. Triton International Limited |
| NSTAR vs. Iridium Communications | NSTAR vs. The Hanover Insurance | NSTAR vs. Siriuspoint | NSTAR vs. Citizens |
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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