Correlation Between EXELON and Sapiens International
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By analyzing existing cross correlation between EXELON GENERATION LLC and Sapiens International, you can compare the effects of market volatilities on EXELON and Sapiens International 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 EXELON with a short position of Sapiens International. Check out your portfolio center. Please also check ongoing floating volatility patterns of EXELON and Sapiens International.
Diversification Opportunities for EXELON and Sapiens International
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between EXELON and Sapiens is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding EXELON GENERATION LLC and Sapiens International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sapiens International and EXELON 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 EXELON GENERATION LLC are associated (or correlated) with Sapiens International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sapiens International has no effect on the direction of EXELON i.e., EXELON and Sapiens International go up and down completely randomly.
Pair Corralation between EXELON and Sapiens International
Assuming the 90 days trading horizon EXELON GENERATION LLC is expected to generate 0.18 times more return on investment than Sapiens International. However, EXELON GENERATION LLC is 5.65 times less risky than Sapiens International. It trades about -0.19 of its potential returns per unit of risk. Sapiens International is currently generating about -0.22 per unit of risk. If you would invest 10,060 in EXELON GENERATION LLC on August 31, 2024 and sell it today you would lose (342.00) from holding EXELON GENERATION LLC or give up 3.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 77.27% |
| Values | Daily Returns |
EXELON GENERATION LLC vs. Sapiens International
Performance |
| Timeline |
| EXELON GENERATION LLC |
| Sapiens International |
EXELON and Sapiens International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EXELON and Sapiens International
The main advantage of trading using opposite EXELON and Sapiens International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EXELON position performs unexpectedly, Sapiens International 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 Sapiens International will offset losses from the drop in Sapiens International's long position.The idea behind EXELON GENERATION LLC and Sapiens International 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.| Sapiens International vs. MondayCom | Sapiens International vs. Gitlab Inc | Sapiens International vs. DocuSign |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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