Correlation Between AMEREN and 00108WAF7
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By analyzing existing cross correlation between AMEREN P 365 and AEP TEX INC, you can compare the effects of market volatilities on AMEREN and 00108WAF7 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 AMEREN with a short position of 00108WAF7. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMEREN and 00108WAF7.
Diversification Opportunities for AMEREN and 00108WAF7
Good diversification
The 3 months correlation between AMEREN and 00108WAF7 is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding AMEREN P 365 and AEP TEX INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEP TEX INC and AMEREN 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 AMEREN P 365 are associated (or correlated) with 00108WAF7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEP TEX INC has no effect on the direction of AMEREN i.e., AMEREN and 00108WAF7 go up and down completely randomly.
Pair Corralation between AMEREN and 00108WAF7
Assuming the 90 days trading horizon AMEREN P 365 is expected to generate 0.04 times more return on investment than 00108WAF7. However, AMEREN P 365 is 23.19 times less risky than 00108WAF7. It trades about 0.03 of its potential returns per unit of risk. AEP TEX INC is currently generating about -0.04 per unit of risk. If you would invest 9,851 in AMEREN P 365 on August 28, 2024 and sell it today you would earn a total of 9.00 from holding AMEREN P 365 or generate 0.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.24% |
| Values | Daily Returns |
AMEREN P 365 vs. AEP TEX INC
Performance |
| Timeline |
| AMEREN P 365 |
| AEP TEX INC |
AMEREN and 00108WAF7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMEREN and 00108WAF7
The main advantage of trading using opposite AMEREN and 00108WAF7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMEREN position performs unexpectedly, 00108WAF7 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 00108WAF7 will offset losses from the drop in 00108WAF7's long position.| AMEREN vs. AEP TEX INC | AMEREN vs. US BANK NATIONAL | AMEREN vs. Dupont De Nemours | AMEREN vs. The Travelers Companies |
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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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