Correlation Between 26442CBJ2 and 00108WAF7
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By analyzing existing cross correlation between DUK 495 15 JAN 33 and AEP TEX INC, you can compare the effects of market volatilities on 26442CBJ2 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 26442CBJ2 with a short position of 00108WAF7. Check out your portfolio center. Please also check ongoing floating volatility patterns of 26442CBJ2 and 00108WAF7.
Diversification Opportunities for 26442CBJ2 and 00108WAF7
Pay attention - limited upside
The 3 months correlation between 26442CBJ2 and 00108WAF7 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DUK 495 15 JAN 33 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 26442CBJ2 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 DUK 495 15 JAN 33 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 26442CBJ2 i.e., 26442CBJ2 and 00108WAF7 go up and down completely randomly.
Pair Corralation between 26442CBJ2 and 00108WAF7
If you would invest 7,507 in AEP TEX INC on September 12, 2024 and sell it today you would earn a total of 161.00 from holding AEP TEX INC or generate 2.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
DUK 495 15 JAN 33 vs. AEP TEX INC
Performance |
| Timeline |
| DUK 495 15 |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AEP TEX INC |
26442CBJ2 and 00108WAF7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 26442CBJ2 and 00108WAF7
The main advantage of trading using opposite 26442CBJ2 and 00108WAF7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 26442CBJ2 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.| 26442CBJ2 vs. SBM Offshore NV | 26442CBJ2 vs. Jeld Wen Holding | 26442CBJ2 vs. Universal | 26442CBJ2 vs. Newpark Resources |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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