Correlation Between 644239AY1 and 00108WAF7
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By analyzing existing cross correlation between NEW ENGLAND TEL and AEP TEX INC, you can compare the effects of market volatilities on 644239AY1 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 644239AY1 with a short position of 00108WAF7. Check out your portfolio center. Please also check ongoing floating volatility patterns of 644239AY1 and 00108WAF7.
Diversification Opportunities for 644239AY1 and 00108WAF7
Good diversification
The 3 months correlation between 644239AY1 and 00108WAF7 is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding NEW ENGLAND TEL 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 644239AY1 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 NEW ENGLAND TEL 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 644239AY1 i.e., 644239AY1 and 00108WAF7 go up and down completely randomly.
Pair Corralation between 644239AY1 and 00108WAF7
Assuming the 90 days trading horizon NEW ENGLAND TEL is expected to generate 0.33 times more return on investment than 00108WAF7. However, NEW ENGLAND TEL is 3.0 times less risky than 00108WAF7. It trades about 0.26 of its potential returns per unit of risk. AEP TEX INC is currently generating about -0.05 per unit of risk. If you would invest 11,115 in NEW ENGLAND TEL on August 31, 2024 and sell it today you would earn a total of 471.00 from holding NEW ENGLAND TEL or generate 4.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 73.33% |
| Values | Daily Returns |
NEW ENGLAND TEL vs. AEP TEX INC
Performance |
| Timeline |
| NEW ENGLAND TEL |
| AEP TEX INC |
644239AY1 and 00108WAF7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 644239AY1 and 00108WAF7
The main advantage of trading using opposite 644239AY1 and 00108WAF7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 644239AY1 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.| 644239AY1 vs. AEP TEX INC | 644239AY1 vs. US BANK NATIONAL | 644239AY1 vs. Bank of America | 644239AY1 vs. GE Aerospace |
| 00108WAF7 vs. Asure Software | 00108WAF7 vs. Casio Computer Co | 00108WAF7 vs. Haverty Furniture Companies | 00108WAF7 vs. SL Green Realty |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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