Correlation Between 00108WAF7 and BKV
Specify exactly 2 symbols:
By analyzing existing cross correlation between AEP TEX INC and BKV Corporation, you can compare the effects of market volatilities on 00108WAF7 and BKV 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 00108WAF7 with a short position of BKV. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and BKV.
Diversification Opportunities for 00108WAF7 and BKV
Significant diversification
The 3 months correlation between 00108WAF7 and BKV is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC and BKV Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BKV Corporation and 00108WAF7 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 AEP TEX INC are associated (or correlated) with BKV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BKV Corporation has no effect on the direction of 00108WAF7 i.e., 00108WAF7 and BKV go up and down completely randomly.
Pair Corralation between 00108WAF7 and BKV
Assuming the 90 days trading horizon AEP TEX INC is expected to generate 58.6 times more return on investment than BKV. However, 00108WAF7 is 58.6 times more volatile than BKV Corporation. It trades about 0.1 of its potential returns per unit of risk. BKV Corporation is currently generating about 0.19 per unit of risk. If you would invest 7,277 in AEP TEX INC on September 25, 2024 and sell it today you would earn a total of 391.00 from holding AEP TEX INC or generate 5.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 70.0% |
Values | Daily Returns |
AEP TEX INC vs. BKV Corp.
Performance |
Timeline |
AEP TEX INC |
BKV Corporation |
00108WAF7 and BKV Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 00108WAF7 and BKV
The main advantage of trading using opposite 00108WAF7 and BKV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 position performs unexpectedly, BKV 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 BKV will offset losses from the drop in BKV's long position.00108WAF7 vs. US BANK NATIONAL | 00108WAF7 vs. BKV Corporation | 00108WAF7 vs. Bristol Myers Squibb | 00108WAF7 vs. Zenvia Inc |
BKV vs. Antero Resources Corp | BKV vs. Empire Petroleum Corp | BKV vs. Permian Resources | BKV vs. SandRidge 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |