Correlation Between WEC Energy and SOCGEN
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By analyzing existing cross correlation between WEC Energy Group and SOCGEN 7367 10 JAN 53, you can compare the effects of market volatilities on WEC Energy and SOCGEN 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 WEC Energy with a short position of SOCGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of WEC Energy and SOCGEN.
Diversification Opportunities for WEC Energy and SOCGEN
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WEC and SOCGEN is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding WEC Energy Group and SOCGEN 7367 10 JAN 53 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOCGEN 7367 10 and WEC Energy 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 WEC Energy Group are associated (or correlated) with SOCGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOCGEN 7367 10 has no effect on the direction of WEC Energy i.e., WEC Energy and SOCGEN go up and down completely randomly.
Pair Corralation between WEC Energy and SOCGEN
Considering the 90-day investment horizon WEC Energy Group is expected to generate 0.61 times more return on investment than SOCGEN. However, WEC Energy Group is 1.64 times less risky than SOCGEN. It trades about 0.11 of its potential returns per unit of risk. SOCGEN 7367 10 JAN 53 is currently generating about -0.15 per unit of risk. If you would invest 9,373 in WEC Energy Group on September 4, 2024 and sell it today you would earn a total of 593.00 from holding WEC Energy Group or generate 6.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 81.25% |
| Values | Daily Returns |
WEC Energy Group vs. SOCGEN 7367 10 JAN 53
Performance |
| Timeline |
| WEC Energy Group |
| SOCGEN 7367 10 |
WEC Energy and SOCGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WEC Energy and SOCGEN
The main advantage of trading using opposite WEC Energy and SOCGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WEC Energy position performs unexpectedly, SOCGEN 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 SOCGEN will offset losses from the drop in SOCGEN's long position.| WEC Energy vs. Alliant Energy Corp | WEC Energy vs. CMS Energy | WEC Energy vs. Exelon | WEC Energy vs. Evergy, |
| SOCGEN vs. Avient Corp | SOCGEN vs. WEC Energy Group | SOCGEN vs. Summit Materials | SOCGEN vs. Consol 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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