Correlation Between 28622HAA9 and 00108WAF7
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By analyzing existing cross correlation between ELV 49 08 FEB 26 and AEP TEX INC, you can compare the effects of market volatilities on 28622HAA9 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 28622HAA9 with a short position of 00108WAF7. Check out your portfolio center. Please also check ongoing floating volatility patterns of 28622HAA9 and 00108WAF7.
Diversification Opportunities for 28622HAA9 and 00108WAF7
Good diversification
The 3 months correlation between 28622HAA9 and 00108WAF7 is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding ELV 49 08 FEB 26 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 28622HAA9 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 ELV 49 08 FEB 26 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 28622HAA9 i.e., 28622HAA9 and 00108WAF7 go up and down completely randomly.
Pair Corralation between 28622HAA9 and 00108WAF7
Assuming the 90 days trading horizon ELV 49 08 FEB 26 is expected to under-perform the 00108WAF7. But the bond apears to be less risky and, when comparing its historical volatility, ELV 49 08 FEB 26 is 5.75 times less risky than 00108WAF7. The bond trades about -0.17 of its potential returns per unit of risk. The AEP TEX INC is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 7,400 in AEP TEX INC on September 1, 2024 and sell it today you would earn a total of 268.00 from holding AEP TEX INC or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 70.0% |
| Values | Daily Returns |
ELV 49 08 FEB 26 vs. AEP TEX INC
Performance |
| Timeline |
| ELV 49 08 |
| AEP TEX INC |
28622HAA9 and 00108WAF7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 28622HAA9 and 00108WAF7
The main advantage of trading using opposite 28622HAA9 and 00108WAF7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 28622HAA9 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.| 28622HAA9 vs. Bt Brands | 28622HAA9 vs. Chipotle Mexican Grill | 28622HAA9 vs. KNOT Offshore Partners | 28622HAA9 vs. Biglari Holdings |
| 00108WAF7 vs. AKITA Drilling | 00108WAF7 vs. GameStop Corp | 00108WAF7 vs. Contagious Gaming | 00108WAF7 vs. Awilco Drilling PLC |
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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