Correlation Between AES and Ameren Corp
Can any of the company-specific risk be diversified away by investing in both AES and Ameren Corp 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 AES and Ameren Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The AES and Ameren Corp, you can compare the effects of market volatilities on AES and Ameren Corp 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 AES with a short position of Ameren Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of AES and Ameren Corp.
Diversification Opportunities for AES and Ameren Corp
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AES and Ameren is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding The AES and Ameren Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameren Corp and AES 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 The AES are associated (or correlated) with Ameren Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ameren Corp has no effect on the direction of AES i.e., AES and Ameren Corp go up and down completely randomly.
Pair Corralation between AES and Ameren Corp
Considering the 90-day investment horizon The AES is expected to generate 5.57 times more return on investment than Ameren Corp. However, AES is 5.57 times more volatile than Ameren Corp. It trades about 0.13 of its potential returns per unit of risk. Ameren Corp is currently generating about 0.39 per unit of risk. If you would invest 1,313 in The AES on July 22, 2025 and sell it today you would earn a total of 145.00 from holding The AES or generate 11.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The AES vs. Ameren Corp
Performance |
| Timeline |
| AES |
| Ameren Corp |
AES and Ameren Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AES and Ameren Corp
The main advantage of trading using opposite AES and Ameren Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AES position performs unexpectedly, Ameren Corp 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 Ameren Corp will offset losses from the drop in Ameren Corp's long position.| AES vs. Brookfield Infrastructure Partners | AES vs. Companhia Paranaense de | AES vs. Essential Utilities | AES vs. Pinnacle West Capital |
| Ameren Corp vs. CMS Energy | Ameren Corp vs. Pinnacle West Capital | Ameren Corp vs. MGE Energy | Ameren Corp vs. Evergy, |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |