Correlation Between WEC Energy and O I
Can any of the company-specific risk be diversified away by investing in both WEC Energy and O I 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 WEC Energy and O I into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WEC Energy Group and O I Glass, you can compare the effects of market volatilities on WEC Energy and O I 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 O I. Check out your portfolio center. Please also check ongoing floating volatility patterns of WEC Energy and O I.
Diversification Opportunities for WEC Energy and O I
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between WEC and O I is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding WEC Energy Group and O I Glass in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on O I Glass 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 O I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of O I Glass has no effect on the direction of WEC Energy i.e., WEC Energy and O I go up and down completely randomly.
Pair Corralation between WEC Energy and O I
Considering the 90-day investment horizon WEC Energy Group is expected to generate 0.49 times more return on investment than O I. However, WEC Energy Group is 2.06 times less risky than O I. It trades about 0.19 of its potential returns per unit of risk. O I Glass is currently generating about -0.07 per unit of risk. If you would invest 7,865 in WEC Energy Group on January 26, 2024 and sell it today you would earn a total of 398.00 from holding WEC Energy Group or generate 5.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
WEC Energy Group vs. O I Glass
Performance |
Timeline |
WEC Energy Group |
O I Glass |
WEC Energy and O I Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with WEC Energy and O I
The main advantage of trading using opposite WEC Energy and O I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WEC Energy position performs unexpectedly, O I 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 O I will offset losses from the drop in O I's long position.WEC Energy vs. Alliant Energy Corp | WEC Energy vs. CMS Energy | WEC Energy vs. Exelon | WEC Energy vs. Evergy Common Stock |
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.
Other Complementary Tools
Money Managers Screen money managers from public funds and ETFs managed around the world | |
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 | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |