Correlation Between 00108WAF7 and 98389BAN0
Specify exactly 2 symbols:
By analyzing existing cross correlation between AEP TEX INC and XCEL ENERGY INC, you can compare the effects of market volatilities on 00108WAF7 and 98389BAN0 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 98389BAN0. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and 98389BAN0.
Diversification Opportunities for 00108WAF7 and 98389BAN0
Good diversification
The 3 months correlation between 00108WAF7 and 98389BAN0 is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC and XCEL ENERGY INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XCEL ENERGY INC 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 98389BAN0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XCEL ENERGY INC has no effect on the direction of 00108WAF7 i.e., 00108WAF7 and 98389BAN0 go up and down completely randomly.
Pair Corralation between 00108WAF7 and 98389BAN0
Assuming the 90 days trading horizon AEP TEX INC is expected to generate 45.34 times more return on investment than 98389BAN0. However, 00108WAF7 is 45.34 times more volatile than XCEL ENERGY INC. It trades about 0.07 of its potential returns per unit of risk. XCEL ENERGY INC is currently generating about 0.01 per unit of risk. If you would invest 7,290 in AEP TEX INC on September 2, 2024 and sell it today you would earn a total of 378.00 from holding AEP TEX INC or generate 5.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.48% |
| Values | Daily Returns |
AEP TEX INC vs. XCEL ENERGY INC
Performance |
| Timeline |
| AEP TEX INC |
| XCEL ENERGY INC |
00108WAF7 and 98389BAN0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00108WAF7 and 98389BAN0
The main advantage of trading using opposite 00108WAF7 and 98389BAN0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 position performs unexpectedly, 98389BAN0 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 98389BAN0 will offset losses from the drop in 98389BAN0's long position.| 00108WAF7 vs. Zhihu Inc ADR | 00108WAF7 vs. Playtika Holding Corp | 00108WAF7 vs. Thor Industries | 00108WAF7 vs. Dana Inc |
| 98389BAN0 vs. Tianjin Capital Environmental | 98389BAN0 vs. Four Seasons Education | 98389BAN0 vs. Daily Journal Corp | 98389BAN0 vs. Udemy Inc |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |