Correlation Between 90331HPL1 and Expand Energy
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By analyzing existing cross correlation between US BANK NATIONAL and Expand Energy, you can compare the effects of market volatilities on 90331HPL1 and Expand 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 90331HPL1 with a short position of Expand Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of 90331HPL1 and Expand Energy.
Diversification Opportunities for 90331HPL1 and Expand Energy
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 90331HPL1 and Expand is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding US BANK NATIONAL and Expand Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expand Energy and 90331HPL1 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 US BANK NATIONAL are associated (or correlated) with Expand Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expand Energy has no effect on the direction of 90331HPL1 i.e., 90331HPL1 and Expand Energy go up and down completely randomly.
Pair Corralation between 90331HPL1 and Expand Energy
Assuming the 90 days trading horizon US BANK NATIONAL is expected to under-perform the Expand Energy. But the bond apears to be less risky and, when comparing its historical volatility, US BANK NATIONAL is 3.33 times less risky than Expand Energy. The bond trades about -0.03 of its potential returns per unit of risk. The Expand Energy is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 7,800 in Expand Energy on November 3, 2024 and sell it today you would earn a total of 2,100 from holding Expand Energy or generate 26.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 54.3% |
| Values | Daily Returns |
US BANK NATIONAL vs. Expand Energy
Performance |
| Timeline |
| US BANK NATIONAL |
| Expand Energy |
90331HPL1 and Expand Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 90331HPL1 and Expand Energy
The main advantage of trading using opposite 90331HPL1 and Expand Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 90331HPL1 position performs unexpectedly, Expand 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 Expand Energy will offset losses from the drop in Expand Energy's long position.| 90331HPL1 vs. Playtech plc | 90331HPL1 vs. Rocky Brands | 90331HPL1 vs. Lincoln Electric Holdings | 90331HPL1 vs. Franklin Wireless Corp |
| Expand Energy vs. BRP Inc | Expand Energy vs. Life Time Group | Expand Energy vs. Pintec Technology Holdings | Expand Energy vs. Nasdaq Inc |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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