Correlation Between SPECTRA and 00108WAF7
Specify exactly 2 symbols:
By analyzing existing cross correlation between SPECTRA ENERGY PARTNERS and AEP TEX INC, you can compare the effects of market volatilities on SPECTRA 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 SPECTRA with a short position of 00108WAF7. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPECTRA and 00108WAF7.
Diversification Opportunities for SPECTRA and 00108WAF7
Excellent diversification
The 3 months correlation between SPECTRA and 00108WAF7 is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding SPECTRA ENERGY PARTNERS 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 SPECTRA 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 SPECTRA ENERGY PARTNERS 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 SPECTRA i.e., SPECTRA and 00108WAF7 go up and down completely randomly.
Pair Corralation between SPECTRA and 00108WAF7
Assuming the 90 days trading horizon SPECTRA is expected to generate 23.99 times less return on investment than 00108WAF7. But when comparing it to its historical volatility, SPECTRA ENERGY PARTNERS is 10.12 times less risky than 00108WAF7. It trades about 0.08 of its potential returns per unit of risk. AEP TEX INC is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 7,190 in AEP TEX INC on November 21, 2024 and sell it today you would earn a total of 349.00 from holding AEP TEX INC or generate 4.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 87.88% |
| Values | Daily Returns |
SPECTRA ENERGY PARTNERS vs. AEP TEX INC
Performance |
| Timeline |
| SPECTRA ENERGY PARTNERS |
| AEP TEX INC |
SPECTRA and 00108WAF7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPECTRA and 00108WAF7
The main advantage of trading using opposite SPECTRA and 00108WAF7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPECTRA 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.| SPECTRA vs. ASML Holding NV | SPECTRA vs. Cardinal Health | SPECTRA vs. Hudson Technologies | SPECTRA vs. Micron Technology |
| 00108WAF7 vs. National Beverage Corp | 00108WAF7 vs. ON24 Inc | 00108WAF7 vs. SNDL Inc | 00108WAF7 vs. Treasury Wine Estates |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |