Correlation Between New Hampshire and New York
Can any of the company-specific risk be diversified away by investing in both New Hampshire and New York 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 New Hampshire and New York into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Hampshire Higher and New York Tax Free, you can compare the effects of market volatilities on New Hampshire and New York 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 New Hampshire with a short position of New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Hampshire and New York.
Diversification Opportunities for New Hampshire and New York
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between New and New is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding New Hampshire Higher and New York Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York Tax and New Hampshire 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 New Hampshire Higher are associated (or correlated) with New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York Tax has no effect on the direction of New Hampshire i.e., New Hampshire and New York go up and down completely randomly.
Pair Corralation between New Hampshire and New York
Assuming the 90 days horizon New Hampshire Higher is expected to generate 0.51 times more return on investment than New York. However, New Hampshire Higher is 1.97 times less risky than New York. It trades about 0.22 of its potential returns per unit of risk. New York Tax Free is currently generating about -0.05 per unit of risk. If you would invest 1,927 in New Hampshire Higher on November 4, 2024 and sell it today you would earn a total of 12.00 from holding New Hampshire Higher or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Hampshire Higher vs. New York Tax Free
Performance |
| Timeline |
| New Hampshire Higher |
| New York Tax |
New Hampshire and New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Hampshire and New York
The main advantage of trading using opposite New Hampshire and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Hampshire position performs unexpectedly, New York 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 New York will offset losses from the drop in New York's long position.| New Hampshire vs. Blackstone Secured Lending | New Hampshire vs. Davis Financial Fund | New Hampshire vs. Hewitt Money Market | New Hampshire vs. Fidelity Advisor Financial |
| New York vs. T Rowe Price | New York vs. T Rowe Price | New York vs. T Rowe Price | New York vs. T Rowe Price |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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