Correlation Between Calpine and FirstEnergy
Can any of the company-specific risk be diversified away by investing in both Calpine and FirstEnergy 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 Calpine and FirstEnergy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calpine and FirstEnergy, you can compare the effects of market volatilities on Calpine and FirstEnergy 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 Calpine with a short position of FirstEnergy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calpine and FirstEnergy.
Diversification Opportunities for Calpine and FirstEnergy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Calpine and FirstEnergy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Calpine and FirstEnergy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FirstEnergy and Calpine 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 Calpine are associated (or correlated) with FirstEnergy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FirstEnergy has no effect on the direction of Calpine i.e., Calpine and FirstEnergy go up and down completely randomly.
Pair Corralation between Calpine and FirstEnergy
If you would invest 3,948 in FirstEnergy on January 25, 2024 and sell it today you would lose (136.00) from holding FirstEnergy or give up 3.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Calpine vs. FirstEnergy
Performance |
| Timeline |
| Calpine |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| FirstEnergy |
Calpine and FirstEnergy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calpine and FirstEnergy
The main advantage of trading using opposite Calpine and FirstEnergy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calpine position performs unexpectedly, FirstEnergy 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 FirstEnergy will offset losses from the drop in FirstEnergy's long position.| Calpine vs. Willamette Valley Vineyards | Calpine vs. Keurig Dr Pepper | Calpine vs. Vector Group | Calpine vs. The Coca Cola |
| FirstEnergy vs. Centrais Eltricas Brasileiras | FirstEnergy vs. Central Puerto SA | FirstEnergy vs. CMS Energy | FirstEnergy vs. Centrais Electricas Brasileiras |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Stocks Directory Find actively traded stocks across global 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 | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |