Correlation Between WEC Energy and Lennar
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By analyzing existing cross correlation between WEC Energy Group and Lennar 475 percent, you can compare the effects of market volatilities on WEC Energy and Lennar 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 Lennar. Check out your portfolio center. Please also check ongoing floating volatility patterns of WEC Energy and Lennar.
Diversification Opportunities for WEC Energy and Lennar
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between WEC and Lennar is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding WEC Energy Group and Lennar 475 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lennar 475 percent 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 Lennar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lennar 475 percent has no effect on the direction of WEC Energy i.e., WEC Energy and Lennar go up and down completely randomly.
Pair Corralation between WEC Energy and Lennar
Considering the 90-day investment horizon WEC Energy Group is expected to generate 5.98 times more return on investment than Lennar. However, WEC Energy is 5.98 times more volatile than Lennar 475 percent. It trades about 0.02 of its potential returns per unit of risk. Lennar 475 percent is currently generating about -0.04 per unit of risk. If you would invest 9,379 in WEC Energy Group on September 25, 2024 and sell it today you would earn a total of 105.00 from holding WEC Energy Group or generate 1.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 96.83% |
Values | Daily Returns |
WEC Energy Group vs. Lennar 475 percent
Performance |
Timeline |
WEC Energy Group |
Lennar 475 percent |
WEC Energy and Lennar Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with WEC Energy and Lennar
The main advantage of trading using opposite WEC Energy and Lennar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WEC Energy position performs unexpectedly, Lennar 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 Lennar will offset losses from the drop in Lennar's long position.WEC Energy vs. Alliant Energy Corp | WEC Energy vs. CMS Energy | WEC Energy vs. Exelon | WEC Energy vs. Evergy, |
Lennar vs. Western Acquisition Ventures | Lennar vs. Century Aluminum | Lennar vs. Yuexiu Transport Infrastructure | Lennar vs. Sabre Corpo |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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