Correlation Between 90331HPL1 and EXELON
Specify exactly 2 symbols:
By analyzing existing cross correlation between US BANK NATIONAL and EXELON GENERATION LLC, you can compare the effects of market volatilities on 90331HPL1 and EXELON 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 EXELON. Check out your portfolio center. Please also check ongoing floating volatility patterns of 90331HPL1 and EXELON.
Diversification Opportunities for 90331HPL1 and EXELON
Significant diversification
The 3 months correlation between 90331HPL1 and EXELON is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding US BANK NATIONAL and EXELON GENERATION LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXELON GENERATION LLC 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 EXELON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXELON GENERATION LLC has no effect on the direction of 90331HPL1 i.e., 90331HPL1 and EXELON go up and down completely randomly.
Pair Corralation between 90331HPL1 and EXELON
Assuming the 90 days trading horizon US BANK NATIONAL is expected to under-perform the EXELON. In addition to that, 90331HPL1 is 1.06 times more volatile than EXELON GENERATION LLC. It trades about -0.2 of its total potential returns per unit of risk. EXELON GENERATION LLC is currently generating about -0.07 per unit of volatility. If you would invest 9,908 in EXELON GENERATION LLC on August 31, 2024 and sell it today you would lose (207.00) from holding EXELON GENERATION LLC or give up 2.09% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 68.18% |
Values | Daily Returns |
US BANK NATIONAL vs. EXELON GENERATION LLC
Performance |
Timeline |
US BANK NATIONAL |
EXELON GENERATION LLC |
90331HPL1 and EXELON Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 90331HPL1 and EXELON
The main advantage of trading using opposite 90331HPL1 and EXELON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 90331HPL1 position performs unexpectedly, EXELON 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 EXELON will offset losses from the drop in EXELON's long position.The idea behind US BANK NATIONAL and EXELON GENERATION LLC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.EXELON vs. AEP TEX INC | EXELON vs. US BANK NATIONAL | EXELON vs. International Business Machines | EXELON vs. Intel |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
Commodity Directory Find actively traded commodities issued by global exchanges | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |