Correlation Between 00206RAG7 and Alliant Energy
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By analyzing existing cross correlation between ATT INC 63 and Alliant Energy Corp, you can compare the effects of market volatilities on 00206RAG7 and Alliant Energy 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 00206RAG7 with a short position of Alliant Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00206RAG7 and Alliant Energy.
Diversification Opportunities for 00206RAG7 and Alliant Energy
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 00206RAG7 and Alliant is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding ATT INC 63 and Alliant Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alliant Energy Corp and 00206RAG7 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 ATT INC 63 are associated (or correlated) with Alliant Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alliant Energy Corp has no effect on the direction of 00206RAG7 i.e., 00206RAG7 and Alliant Energy go up and down completely randomly.
Pair Corralation between 00206RAG7 and Alliant Energy
Assuming the 90 days trading horizon 00206RAG7 is expected to generate 10.89 times less return on investment than Alliant Energy. In addition to that, 00206RAG7 is 1.13 times more volatile than Alliant Energy Corp. It trades about 0.0 of its total potential returns per unit of risk. Alliant Energy Corp is currently generating about 0.06 per unit of volatility. If you would invest 5,044 in Alliant Energy Corp on September 1, 2024 and sell it today you would earn a total of 1,276 from holding Alliant Energy Corp or generate 25.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.77% |
| Values | Daily Returns |
ATT INC 63 vs. Alliant Energy Corp
Performance |
| Timeline |
| ATT INC 63 |
| Alliant Energy Corp |
00206RAG7 and Alliant Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00206RAG7 and Alliant Energy
The main advantage of trading using opposite 00206RAG7 and Alliant Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00206RAG7 position performs unexpectedly, Alliant Energy 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 Alliant Energy will offset losses from the drop in Alliant Energy's long position.| 00206RAG7 vs. AEP TEX INC | 00206RAG7 vs. US BANK NATIONAL | 00206RAG7 vs. Bank of America | 00206RAG7 vs. GE Aerospace |
| Alliant Energy vs. MGE Energy | Alliant Energy vs. CMS Energy | Alliant Energy vs. OGE Energy | Alliant Energy vs. DTE Energy |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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