Correlation Between Duke Energy and Pinterest
Can any of the company-specific risk be diversified away by investing in both Duke Energy and Pinterest 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 Duke Energy and Pinterest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duke Energy and Pinterest, you can compare the effects of market volatilities on Duke Energy and Pinterest 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 Duke Energy with a short position of Pinterest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duke Energy and Pinterest.
Diversification Opportunities for Duke Energy and Pinterest
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Duke and Pinterest is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Duke Energy and Pinterest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinterest and Duke 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 Duke Energy are associated (or correlated) with Pinterest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinterest has no effect on the direction of Duke Energy i.e., Duke Energy and Pinterest go up and down completely randomly.
Pair Corralation between Duke Energy and Pinterest
Assuming the 90 days trading horizon Duke Energy is expected to generate 0.09 times more return on investment than Pinterest. However, Duke Energy is 11.31 times less risky than Pinterest. It trades about 0.03 of its potential returns per unit of risk. Pinterest is currently generating about -0.13 per unit of risk. If you would invest 2,478 in Duke Energy on September 8, 2025 and sell it today you would earn a total of 16.00 from holding Duke Energy or generate 0.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duke Energy vs. Pinterest
Performance |
| Timeline |
| Duke Energy |
Duke Energy and Pinterest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duke Energy and Pinterest
The main advantage of trading using opposite Duke Energy and Pinterest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duke Energy position performs unexpectedly, Pinterest 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 Pinterest will offset losses from the drop in Pinterest's long position.| Duke Energy vs. Southern Company | Duke Energy vs. Duke Energy | Duke Energy vs. National Grid PLC | Duke Energy vs. American Electric Power |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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