Correlation Between CHRISTUS and 00108WAF7
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By analyzing existing cross correlation between CHRISTUS HEALTH 4341 and AEP TEX INC, you can compare the effects of market volatilities on CHRISTUS 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 CHRISTUS with a short position of 00108WAF7. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHRISTUS and 00108WAF7.
Diversification Opportunities for CHRISTUS and 00108WAF7
Good diversification
The 3 months correlation between CHRISTUS and 00108WAF7 is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding CHRISTUS HEALTH 4341 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 CHRISTUS 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 CHRISTUS HEALTH 4341 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 CHRISTUS i.e., CHRISTUS and 00108WAF7 go up and down completely randomly.
Pair Corralation between CHRISTUS and 00108WAF7
Assuming the 90 days trading horizon CHRISTUS is expected to generate 1118.59 times less return on investment than 00108WAF7. But when comparing it to its historical volatility, CHRISTUS HEALTH 4341 is 137.55 times less risky than 00108WAF7. It trades about 0.02 of its potential returns per unit of risk. AEP TEX INC is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 8,736 in AEP TEX INC on August 29, 2024 and sell it today you would lose (1,647) from holding AEP TEX INC or give up 18.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.06% |
| Values | Daily Returns |
CHRISTUS HEALTH 4341 vs. AEP TEX INC
Performance |
| Timeline |
| CHRISTUS HEALTH 4341 |
| AEP TEX INC |
CHRISTUS and 00108WAF7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHRISTUS and 00108WAF7
The main advantage of trading using opposite CHRISTUS and 00108WAF7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHRISTUS 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.| CHRISTUS vs. AEP TEX INC | CHRISTUS vs. US BANK NATIONAL | CHRISTUS vs. Bank of America | CHRISTUS vs. Take Two Interactive Software |
| 00108WAF7 vs. US BANK NATIONAL | 00108WAF7 vs. Dupont De Nemours | 00108WAF7 vs. The Travelers Companies | 00108WAF7 vs. Exxon Mobil Corp |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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