Correlation Between 00108WAF7 and SOUTHERN
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By analyzing existing cross correlation between AEP TEX INC and SOUTHERN CALIF EDISON, you can compare the effects of market volatilities on 00108WAF7 and SOUTHERN 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 SOUTHERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and SOUTHERN.
Diversification Opportunities for 00108WAF7 and SOUTHERN
Good diversification
The 3 months correlation between 00108WAF7 and SOUTHERN is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC and SOUTHERN CALIF EDISON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHERN CALIF EDISON 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 SOUTHERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHERN CALIF EDISON has no effect on the direction of 00108WAF7 i.e., 00108WAF7 and SOUTHERN go up and down completely randomly.
Pair Corralation between 00108WAF7 and SOUTHERN
Assuming the 90 days trading horizon AEP TEX INC is expected to generate 183.04 times more return on investment than SOUTHERN. However, 00108WAF7 is 183.04 times more volatile than SOUTHERN CALIF EDISON. It trades about 0.13 of its potential returns per unit of risk. SOUTHERN CALIF EDISON is currently generating about -0.11 per unit of risk. If you would invest 7,607 in AEP TEX INC on September 3, 2024 and sell it today you would earn a total of 614.00 from holding AEP TEX INC or generate 8.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.11% |
| Values | Daily Returns |
AEP TEX INC vs. SOUTHERN CALIF EDISON
Performance |
| Timeline |
| AEP TEX INC |
| SOUTHERN CALIF EDISON |
00108WAF7 and SOUTHERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00108WAF7 and SOUTHERN
The main advantage of trading using opposite 00108WAF7 and SOUTHERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 position performs unexpectedly, SOUTHERN 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 SOUTHERN will offset losses from the drop in SOUTHERN's long position.| 00108WAF7 vs. Universal Music Group | 00108WAF7 vs. Pool Corporation | 00108WAF7 vs. Under Armour C | 00108WAF7 vs. Figs Inc |
| SOUTHERN vs. Grocery Outlet Holding | SOUTHERN vs. SunOpta | SOUTHERN vs. Tyson Foods | SOUTHERN vs. Cedar Realty Trust |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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