Correlation Between MASTEC and 00108WAF7
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By analyzing existing cross correlation between MASTEC INC 45 and AEP TEX INC, you can compare the effects of market volatilities on MASTEC 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 MASTEC with a short position of 00108WAF7. Check out your portfolio center. Please also check ongoing floating volatility patterns of MASTEC and 00108WAF7.
Diversification Opportunities for MASTEC and 00108WAF7
Very weak diversification
The 3 months correlation between MASTEC and 00108WAF7 is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding MASTEC INC 45 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 MASTEC 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 MASTEC INC 45 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 MASTEC i.e., MASTEC and 00108WAF7 go up and down completely randomly.
Pair Corralation between MASTEC and 00108WAF7
Assuming the 90 days trading horizon MASTEC is expected to generate 8.12 times less return on investment than 00108WAF7. But when comparing it to its historical volatility, MASTEC INC 45 is 4.85 times less risky than 00108WAF7. It trades about 0.16 of its potential returns per unit of risk. AEP TEX INC is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 7,097 in AEP TEX INC on November 9, 2024 and sell it today you would earn a total of 301.00 from holding AEP TEX INC or generate 4.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 85.0% |
| Values | Daily Returns |
MASTEC INC 45 vs. AEP TEX INC
Performance |
| Timeline |
| MASTEC INC 45 |
| AEP TEX INC |
MASTEC and 00108WAF7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MASTEC and 00108WAF7
The main advantage of trading using opposite MASTEC and 00108WAF7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MASTEC 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.| MASTEC vs. Cytek Biosciences | MASTEC vs. National Vision Holdings | MASTEC vs. Amgen Inc | MASTEC vs. Sonida Senior Living |
| 00108WAF7 vs. BioNTech SE | 00108WAF7 vs. Molecular Partners AG | 00108WAF7 vs. Nuvalent | 00108WAF7 vs. Regeneron Pharmaceuticals |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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