Correlation Between 828807DQ7 and Alliant Energy
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By analyzing existing cross correlation between SPG 225 15 JAN 32 and Alliant Energy Corp, you can compare the effects of market volatilities on 828807DQ7 and Alliant 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 828807DQ7 with a short position of Alliant Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of 828807DQ7 and Alliant Energy.
Diversification Opportunities for 828807DQ7 and Alliant Energy
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 828807DQ7 and Alliant is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding SPG 225 15 JAN 32 and Alliant Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alliant Energy Corp and 828807DQ7 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 SPG 225 15 JAN 32 are associated (or correlated) with Alliant Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alliant Energy Corp has no effect on the direction of 828807DQ7 i.e., 828807DQ7 and Alliant Energy go up and down completely randomly.
Pair Corralation between 828807DQ7 and Alliant Energy
Assuming the 90 days trading horizon 828807DQ7 is expected to generate 13.8 times less return on investment than Alliant Energy. But when comparing it to its historical volatility, SPG 225 15 JAN 32 is 1.97 times less risky than Alliant Energy. It trades about 0.01 of its potential returns per unit of risk. Alliant Energy Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,892 in Alliant Energy Corp on September 1, 2024 and sell it today you would earn a total of 1,428 from holding Alliant Energy Corp or generate 29.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.16% |
| Values | Daily Returns |
SPG 225 15 JAN 32 vs. Alliant Energy Corp
Performance |
| Timeline |
| SPG 225 15 |
| Alliant Energy Corp |
828807DQ7 and Alliant Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 828807DQ7 and Alliant Energy
The main advantage of trading using opposite 828807DQ7 and Alliant Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 828807DQ7 position performs unexpectedly, Alliant 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 Alliant Energy will offset losses from the drop in Alliant Energy's long position.| 828807DQ7 vs. Stratasys | 828807DQ7 vs. Asure Software | 828807DQ7 vs. Evertz Technologies Limited | 828807DQ7 vs. Usio Inc |
| Alliant Energy vs. MGE Energy | Alliant Energy vs. CMS Energy | Alliant Energy vs. OGE Energy | Alliant Energy vs. DTE Energy |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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