Correlation Between CABKSM and 00108WAF7

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both CABKSM and 00108WAF7 at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CABKSM and 00108WAF7 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CABKSM 6208 18 JAN 29 and AEP TEX INC, you can compare the effects of market volatilities on CABKSM 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 CABKSM with a short position of 00108WAF7. Check out your portfolio center. Please also check ongoing floating volatility patterns of CABKSM and 00108WAF7.

Diversification Opportunities for CABKSM and 00108WAF7

-0.07
  Correlation Coefficient

Good diversification

The 3 months correlation between CABKSM and 00108WAF7 is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding CABKSM 6208 18 JAN 29 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 CABKSM 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 CABKSM 6208 18 JAN 29 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 CABKSM i.e., CABKSM and 00108WAF7 go up and down completely randomly.

Pair Corralation between CABKSM and 00108WAF7

Assuming the 90 days trading horizon CABKSM 6208 18 JAN 29 is expected to generate 0.08 times more return on investment than 00108WAF7. However, CABKSM 6208 18 JAN 29 is 13.31 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  10,305  in CABKSM 6208 18 JAN 29 on August 30, 2024 and sell it today you would lose (18.00) from holding CABKSM 6208 18 JAN 29 or give up 0.17% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy88.24%
ValuesDaily Returns

CABKSM 6208 18 JAN 29  vs.  AEP TEX INC

 Performance 
       Timeline  
CABKSM 6208 18 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days CABKSM 6208 18 JAN 29 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, CABKSM is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
AEP TEX INC 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in AEP TEX INC are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, 00108WAF7 sustained solid returns over the last few months and may actually be approaching a breakup point.

CABKSM and 00108WAF7 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with CABKSM and 00108WAF7

The main advantage of trading using opposite CABKSM and 00108WAF7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CABKSM 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.
CABKSM vs. AEP TEX INC
CABKSM vs. US BANK NATIONAL
CABKSM vs. PayPal Holdings
CABKSM vs. IONQ Inc
The idea behind CABKSM 6208 18 JAN 29 and AEP TEX INC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
00108WAF7 vs. Bluerock Homes Trust
00108WAF7 vs. PennantPark Floating Rate
00108WAF7 vs. EastGroup Properties
00108WAF7 vs. NETGEAR
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

Other Complementary Tools

Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY