Correlation Between PACIFIC and CenterPoint Energy
Specify exactly 2 symbols:
By analyzing existing cross correlation between PACIFIC GAS AND and CenterPoint Energy, you can compare the effects of market volatilities on PACIFIC and CenterPoint 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 PACIFIC with a short position of CenterPoint Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of PACIFIC and CenterPoint Energy.
Diversification Opportunities for PACIFIC and CenterPoint Energy
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PACIFIC and CenterPoint is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding PACIFIC GAS AND and CenterPoint Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CenterPoint Energy and PACIFIC 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 PACIFIC GAS AND are associated (or correlated) with CenterPoint Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CenterPoint Energy has no effect on the direction of PACIFIC i.e., PACIFIC and CenterPoint Energy go up and down completely randomly.
Pair Corralation between PACIFIC and CenterPoint Energy
Assuming the 90 days trading horizon PACIFIC GAS AND is expected to generate 44.87 times more return on investment than CenterPoint Energy. However, PACIFIC is 44.87 times more volatile than CenterPoint Energy. It trades about 0.05 of its potential returns per unit of risk. CenterPoint Energy is currently generating about 0.02 per unit of risk. If you would invest 6,844 in PACIFIC GAS AND on September 12, 2024 and sell it today you would earn a total of 891.00 from holding PACIFIC GAS AND or generate 13.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.35% |
| Values | Daily Returns |
PACIFIC GAS AND vs. CenterPoint Energy
Performance |
| Timeline |
| PACIFIC GAS AND |
| CenterPoint Energy |
PACIFIC and CenterPoint Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PACIFIC and CenterPoint Energy
The main advantage of trading using opposite PACIFIC and CenterPoint Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PACIFIC position performs unexpectedly, CenterPoint 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 CenterPoint Energy will offset losses from the drop in CenterPoint Energy's long position.| PACIFIC vs. CenterPoint Energy | PACIFIC vs. Kenon Holdings | PACIFIC vs. Perseus Mining Limited | PACIFIC vs. NiSource |
| CenterPoint Energy vs. Southern Company | CenterPoint Energy vs. Consolidated Edison | CenterPoint Energy vs. Edison International |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |