Correlation Between ENERGY and Gap,
Specify exactly 2 symbols:
By analyzing existing cross correlation between ENERGY TRANSFER PARTNERS and The Gap,, you can compare the effects of market volatilities on ENERGY and Gap, 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 ENERGY with a short position of Gap,. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENERGY and Gap,.
Diversification Opportunities for ENERGY and Gap,
Very good diversification
The 3 months correlation between ENERGY and Gap, is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding ENERGY TRANSFER PARTNERS and The Gap, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gap, and ENERGY 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 ENERGY TRANSFER PARTNERS are associated (or correlated) with Gap,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gap, has no effect on the direction of ENERGY i.e., ENERGY and Gap, go up and down completely randomly.
Pair Corralation between ENERGY and Gap,
Assuming the 90 days trading horizon ENERGY TRANSFER PARTNERS is expected to under-perform the Gap,. But the bond apears to be less risky and, when comparing its historical volatility, ENERGY TRANSFER PARTNERS is 2.53 times less risky than Gap,. The bond trades about -0.14 of its potential returns per unit of risk. The The Gap, is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,174 in The Gap, on August 28, 2024 and sell it today you would earn a total of 309.00 from holding The Gap, or generate 14.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 71.43% |
| Values | Daily Returns |
ENERGY TRANSFER PARTNERS vs. The Gap,
Performance |
| Timeline |
| ENERGY TRANSFER PARTNERS |
| Gap, |
ENERGY and Gap, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENERGY and Gap,
The main advantage of trading using opposite ENERGY and Gap, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENERGY position performs unexpectedly, Gap, 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 Gap, will offset losses from the drop in Gap,'s long position.| ENERGY vs. Addus HomeCare | ENERGY vs. Weyco Group | ENERGY vs. MI Homes | ENERGY vs. Hudson Pacific Properties |
| Gap, vs. RBC Bearings Incorporated | Gap, vs. Nike Inc | Gap, vs. Postal Realty Trust | Gap, vs. Tower One Wireless |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |