Correlation Between Entergy Corp and Black Hills

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Entergy Corp and Black Hills 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 Entergy Corp and Black Hills into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Entergy Corp and Black Hills Corp, you can compare the effects of market volatilities on Entergy Corp and Black Hills 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 Entergy Corp with a short position of Black Hills. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entergy Corp and Black Hills.

Diversification Opportunities for Entergy Corp and Black Hills

  Correlation Coefficient

Almost no diversification

The 3 months correlation between Entergy and Black is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Entergy Corp and Black Hills Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Black Hills Corp and Entergy Corp 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 Entergy Corp are associated (or correlated) with Black Hills. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Black Hills Corp has no effect on the direction of Entergy Corp i.e., Entergy Corp and Black Hills go up and down completely randomly.

Pair Corralation between Entergy Corp and Black Hills

Considering the 90-day investment horizon Entergy Corp is expected to under-perform the Black Hills. In addition to that, Entergy Corp is 1.11 times more volatile than Black Hills Corp. It trades about -0.25 of its total potential returns per unit of risk. Black Hills Corp is currently generating about -0.25 per unit of volatility. If you would invest  7,792  in Black Hills Corp on June 30, 2022 and sell it today you would lose (672.00)  from holding Black Hills Corp or give up 8.62% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
ValuesDaily Returns

Entergy Corp  vs.  Black Hills Corp

 Performance (%) 
Entergy Corp 
Entergy Performance
0 of 100
Over the last 90 days Entergy Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Entergy Corp is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Entergy Price Channel

Black Hills Corp 
Black Performance
0 of 100
Over the last 90 days Black Hills Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking signals, Black Hills is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Black Price Channel

Entergy Corp and Black Hills Volatility Contrast

   Predicted Return Density   

Pair Trading with Entergy Corp and Black Hills

The main advantage of trading using opposite Entergy Corp and Black Hills positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entergy Corp position performs unexpectedly, Black Hills 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 Black Hills will offset losses from the drop in Black Hills' long position.
Entergy Corp vs. Johnson Johnson
The idea behind Entergy Corp and Black Hills Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Black Hills vs. Amazon Inc
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 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.

Other Complementary Tools

Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
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
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk