Correlation Between 458140CE8 and 00108WAF7
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By analyzing existing cross correlation between INTC 4875 10 FEB 28 and AEP TEX INC, you can compare the effects of market volatilities on 458140CE8 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 458140CE8 with a short position of 00108WAF7. Check out your portfolio center. Please also check ongoing floating volatility patterns of 458140CE8 and 00108WAF7.
Diversification Opportunities for 458140CE8 and 00108WAF7
Average diversification
The 3 months correlation between 458140CE8 and 00108WAF7 is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding INTC 4875 10 FEB 28 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 458140CE8 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 INTC 4875 10 FEB 28 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 458140CE8 i.e., 458140CE8 and 00108WAF7 go up and down completely randomly.
Pair Corralation between 458140CE8 and 00108WAF7
Assuming the 90 days trading horizon 458140CE8 is expected to generate 639.95 times less return on investment than 00108WAF7. But when comparing it to its historical volatility, INTC 4875 10 FEB 28 is 145.76 times less risky than 00108WAF7. It trades about 0.02 of its potential returns per unit of risk. AEP TEX INC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 6,762 in AEP TEX INC on September 4, 2024 and sell it today you would earn a total of 1,459 from holding AEP TEX INC or generate 21.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 66.44% |
Values | Daily Returns |
INTC 4875 10 FEB 28 vs. AEP TEX INC
Performance |
Timeline |
INTC 4875 10 |
AEP TEX INC |
458140CE8 and 00108WAF7 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 458140CE8 and 00108WAF7
The main advantage of trading using opposite 458140CE8 and 00108WAF7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 458140CE8 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.458140CE8 vs. Emerson Electric | 458140CE8 vs. Dream Finders Homes | 458140CE8 vs. Newpark Resources | 458140CE8 vs. MYR Group |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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