Correlation Between EXPNLN and Analog Devices
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By analyzing existing cross correlation between EXPNLN 425 01 FEB 29 and Analog Devices, you can compare the effects of market volatilities on EXPNLN and Analog Devices 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 EXPNLN with a short position of Analog Devices. Check out your portfolio center. Please also check ongoing floating volatility patterns of EXPNLN and Analog Devices.
Diversification Opportunities for EXPNLN and Analog Devices
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between EXPNLN and Analog is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding EXPNLN 425 01 FEB 29 and Analog Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Analog Devices and EXPNLN 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 EXPNLN 425 01 FEB 29 are associated (or correlated) with Analog Devices. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Analog Devices has no effect on the direction of EXPNLN i.e., EXPNLN and Analog Devices go up and down completely randomly.
Pair Corralation between EXPNLN and Analog Devices
Assuming the 90 days trading horizon EXPNLN 425 01 FEB 29 is expected to generate 0.15 times more return on investment than Analog Devices. However, EXPNLN 425 01 FEB 29 is 6.67 times less risky than Analog Devices. It trades about 0.2 of its potential returns per unit of risk. Analog Devices is currently generating about -0.05 per unit of risk. If you would invest 9,774 in EXPNLN 425 01 FEB 29 on August 28, 2024 and sell it today you would earn a total of 49.00 from holding EXPNLN 425 01 FEB 29 or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 38.1% |
| Values | Daily Returns |
EXPNLN 425 01 FEB 29 vs. Analog Devices
Performance |
| Timeline |
| EXPNLN 425 01 |
| Analog Devices |
EXPNLN and Analog Devices Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EXPNLN and Analog Devices
The main advantage of trading using opposite EXPNLN and Analog Devices positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EXPNLN position performs unexpectedly, Analog Devices 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 Analog Devices will offset losses from the drop in Analog Devices' long position.| EXPNLN vs. Analog Devices | EXPNLN vs. Elmos Semiconductor SE | EXPNLN vs. MACOM Technology Solutions | EXPNLN vs. AKITA Drilling |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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