Correlation Between Huaneng Power and Edison International
Can any of the company-specific risk be diversified away by investing in both Huaneng Power and Edison International at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Huaneng Power and Edison International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huaneng Power International and Edison International, you can compare the effects of market volatilities on Huaneng Power and Edison International 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 Huaneng Power with a short position of Edison International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaneng Power and Edison International.
Diversification Opportunities for Huaneng Power and Edison International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Huaneng and Edison is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Huaneng Power International and Edison International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edison International and Huaneng Power 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 Huaneng Power International are associated (or correlated) with Edison International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edison International has no effect on the direction of Huaneng Power i.e., Huaneng Power and Edison International go up and down completely randomly.
Pair Corralation between Huaneng Power and Edison International
If you would invest 6,673 in Edison International on January 26, 2024 and sell it today you would earn a total of 409.00 from holding Edison International or generate 6.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Huaneng Power International vs. Edison International
Performance |
| Timeline |
| Huaneng Power Intern |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Edison International |
Huaneng Power and Edison International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaneng Power and Edison International
The main advantage of trading using opposite Huaneng Power and Edison International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaneng Power position performs unexpectedly, Edison International 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 Edison International will offset losses from the drop in Edison International's long position.| Huaneng Power vs. Addus HomeCare | Huaneng Power vs. Pyrophyte Acquisition Corp | Huaneng Power vs. SEI Investments | Huaneng Power vs. SL Green Realty |
| Edison International vs. Southern Company | Edison International vs. American Electric Power | Edison International vs. Duke Energy | Edison International vs. Dominion 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |