Correlation Between 00108WAF7 and 682680BG7
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By analyzing existing cross correlation between AEP TEX INC and OKE 61 15 NOV 32, you can compare the effects of market volatilities on 00108WAF7 and 682680BG7 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 682680BG7. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and 682680BG7.
Diversification Opportunities for 00108WAF7 and 682680BG7
Significant diversification
The 3 months correlation between 00108WAF7 and 682680BG7 is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC and OKE 61 15 NOV 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OKE 61 15 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 682680BG7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OKE 61 15 has no effect on the direction of 00108WAF7 i.e., 00108WAF7 and 682680BG7 go up and down completely randomly.
Pair Corralation between 00108WAF7 and 682680BG7
Assuming the 90 days trading horizon AEP TEX INC is expected to generate 5.01 times more return on investment than 682680BG7. However, 00108WAF7 is 5.01 times more volatile than OKE 61 15 NOV 32. It trades about 0.34 of its potential returns per unit of risk. OKE 61 15 NOV 32 is currently generating about 0.24 per unit of risk. If you would invest 7,441 in AEP TEX INC on September 4, 2024 and sell it today you would earn a total of 780.00 from holding AEP TEX INC or generate 10.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 63.16% |
| Values | Daily Returns |
AEP TEX INC vs. OKE 61 15 NOV 32
Performance |
| Timeline |
| AEP TEX INC |
| OKE 61 15 |
00108WAF7 and 682680BG7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00108WAF7 and 682680BG7
The main advantage of trading using opposite 00108WAF7 and 682680BG7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 position performs unexpectedly, 682680BG7 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 682680BG7 will offset losses from the drop in 682680BG7's long position.| 00108WAF7 vs. Getty Realty | 00108WAF7 vs. Fortress Transp Infra | 00108WAF7 vs. Broadstone Net Lease | 00108WAF7 vs. Triton International Limited |
| 682680BG7 vs. AEP TEX INC | 682680BG7 vs. US BANK NATIONAL | 682680BG7 vs. MetLife | 682680BG7 vs. Brera Holdings PLC |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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