Correlation Between NSTAR and 51Talk Online
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By analyzing existing cross correlation between NSTAR Electric Co and 51Talk Online Education, you can compare the effects of market volatilities on NSTAR and 51Talk Online 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 NSTAR with a short position of 51Talk Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of NSTAR and 51Talk Online.
Diversification Opportunities for NSTAR and 51Talk Online
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between NSTAR and 51Talk is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding NSTAR Electric Co and 51Talk Online Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 51Talk Online Education and NSTAR 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 NSTAR Electric Co are associated (or correlated) with 51Talk Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 51Talk Online Education has no effect on the direction of NSTAR i.e., NSTAR and 51Talk Online go up and down completely randomly.
Pair Corralation between NSTAR and 51Talk Online
Assuming the 90 days trading horizon NSTAR Electric Co is expected to under-perform the 51Talk Online. But the bond apears to be less risky and, when comparing its historical volatility, NSTAR Electric Co is 8.33 times less risky than 51Talk Online. The bond trades about -0.04 of its potential returns per unit of risk. The 51Talk Online Education is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 697.00 in 51Talk Online Education on September 1, 2024 and sell it today you would earn a total of 603.00 from holding 51Talk Online Education or generate 86.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 75.4% |
| Values | Daily Returns |
NSTAR Electric Co vs. 51Talk Online Education
Performance |
| Timeline |
| NSTAR Electric |
| 51Talk Online Education |
NSTAR and 51Talk Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NSTAR and 51Talk Online
The main advantage of trading using opposite NSTAR and 51Talk Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NSTAR position performs unexpectedly, 51Talk Online 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 51Talk Online will offset losses from the drop in 51Talk Online's long position.The idea behind NSTAR Electric Co and 51Talk Online Education 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.| 51Talk Online vs. American Public Education | 51Talk Online vs. ATA Creativity Global | 51Talk Online vs. Cogna Educacao SA | 51Talk Online vs. Adtalem Global Education |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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