Correlation Between 00108WAF7 and STANLN
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By analyzing existing cross correlation between AEP TEX INC and STANLN 7767 16 NOV 28, you can compare the effects of market volatilities on 00108WAF7 and STANLN 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 STANLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and STANLN.
Diversification Opportunities for 00108WAF7 and STANLN
Good diversification
The 3 months correlation between 00108WAF7 and STANLN is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC and STANLN 7767 16 NOV 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STANLN 7767 16 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 STANLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STANLN 7767 16 has no effect on the direction of 00108WAF7 i.e., 00108WAF7 and STANLN go up and down completely randomly.
Pair Corralation between 00108WAF7 and STANLN
Assuming the 90 days trading horizon AEP TEX INC is expected to generate 193.36 times more return on investment than STANLN. However, 00108WAF7 is 193.36 times more volatile than STANLN 7767 16 NOV 28. It trades about 0.07 of its potential returns per unit of risk. STANLN 7767 16 NOV 28 is currently generating about -0.01 per unit of risk. If you would invest 6,876 in AEP TEX INC on September 14, 2024 and sell it today you would earn a total of 792.00 from holding AEP TEX INC or generate 11.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 77.01% |
| Values | Daily Returns |
AEP TEX INC vs. STANLN 7767 16 NOV 28
Performance |
| Timeline |
| AEP TEX INC |
| STANLN 7767 16 |
00108WAF7 and STANLN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00108WAF7 and STANLN
The main advantage of trading using opposite 00108WAF7 and STANLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 position performs unexpectedly, STANLN 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 STANLN will offset losses from the drop in STANLN's long position.| 00108WAF7 vs. Pearson PLC ADR | 00108WAF7 vs. Zane Interactive Publishing | 00108WAF7 vs. Afya | 00108WAF7 vs. PennantPark Investment |
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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