Correlation Between PSJHOG and CenterPoint Energy
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By analyzing existing cross correlation between PSJHOG 27 01 OCT 51 and CenterPoint Energy, you can compare the effects of market volatilities on PSJHOG 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 PSJHOG with a short position of CenterPoint Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of PSJHOG and CenterPoint Energy.
Diversification Opportunities for PSJHOG and CenterPoint Energy
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PSJHOG and CenterPoint is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding PSJHOG 27 01 OCT 51 and CenterPoint Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CenterPoint Energy and PSJHOG 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 PSJHOG 27 01 OCT 51 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 PSJHOG i.e., PSJHOG and CenterPoint Energy go up and down completely randomly.
Pair Corralation between PSJHOG and CenterPoint Energy
Assuming the 90 days trading horizon PSJHOG 27 01 OCT 51 is expected to under-perform the CenterPoint Energy. In addition to that, PSJHOG is 1.06 times more volatile than CenterPoint Energy. It trades about -0.08 of its total potential returns per unit of risk. CenterPoint Energy is currently generating about 0.14 per unit of volatility. If you would invest 2,912 in CenterPoint Energy on October 25, 2024 and sell it today you would earn a total of 332.00 from holding CenterPoint Energy or generate 11.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 50.85% |
| Values | Daily Returns |
PSJHOG 27 01 OCT 51 vs. CenterPoint Energy
Performance |
| Timeline |
| PSJHOG 27 01 |
| CenterPoint Energy |
PSJHOG and CenterPoint Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PSJHOG and CenterPoint Energy
The main advantage of trading using opposite PSJHOG and CenterPoint Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PSJHOG 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.| PSJHOG vs. Balchem | PSJHOG vs. Axalta Coating Systems | PSJHOG vs. JetBlue Airways Corp | PSJHOG vs. Stepan Company |
| CenterPoint Energy vs. DTE Energy | CenterPoint Energy vs. Alliant Energy Corp | CenterPoint Energy vs. Ameren Corp | CenterPoint Energy vs. Pinnacle West Capital |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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