Correlation Between LOEWS and WEC Energy
Specify exactly 2 symbols:
By analyzing existing cross correlation between LOEWS P 6 and WEC Energy Group, you can compare the effects of market volatilities on LOEWS and WEC Energy 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 LOEWS with a short position of WEC Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of LOEWS and WEC Energy.
Diversification Opportunities for LOEWS and WEC Energy
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between LOEWS and WEC is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding LOEWS P 6 and WEC Energy Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WEC Energy Group and LOEWS 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 LOEWS P 6 are associated (or correlated) with WEC Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WEC Energy Group has no effect on the direction of LOEWS i.e., LOEWS and WEC Energy go up and down completely randomly.
Pair Corralation between LOEWS and WEC Energy
Assuming the 90 days trading horizon LOEWS is expected to generate 2.05 times less return on investment than WEC Energy. In addition to that, LOEWS is 1.09 times more volatile than WEC Energy Group. It trades about 0.01 of its total potential returns per unit of risk. WEC Energy Group is currently generating about 0.02 per unit of volatility. If you would invest 9,075 in WEC Energy Group on September 4, 2024 and sell it today you would earn a total of 891.00 from holding WEC Energy Group or generate 9.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 78.38% |
| Values | Daily Returns |
LOEWS P 6 vs. WEC Energy Group
Performance |
| Timeline |
| LOEWS P 6 |
| WEC Energy Group |
LOEWS and WEC Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LOEWS and WEC Energy
The main advantage of trading using opposite LOEWS and WEC Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LOEWS position performs unexpectedly, WEC Energy 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 WEC Energy will offset losses from the drop in WEC Energy's long position.The idea behind LOEWS P 6 and WEC Energy Group 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.| WEC Energy vs. Alliant Energy Corp | WEC Energy vs. CMS Energy | WEC Energy vs. Exelon | WEC Energy vs. Evergy, |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |