Correlation Between New Concept and New York
Can any of the company-specific risk be diversified away by investing in both New Concept 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 Concept 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 Concept Energy and New York City, you can compare the effects of market volatilities on New Concept 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 Concept with a short position of New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Concept and New York.
Diversification Opportunities for New Concept and New York
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between New and New is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding New Concept Energy and New York City in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York City and New Concept 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 Concept Energy 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 City has no effect on the direction of New Concept i.e., New Concept and New York go up and down completely randomly.
Pair Corralation between New Concept and New York
Considering the 90-day investment horizon New Concept Energy is expected to under-perform the New York. In addition to that, New Concept is 1.27 times more volatile than New York City. It trades about -0.39 of its total potential returns per unit of risk. New York City is currently generating about 0.14 per unit of volatility. If you would invest 1,025 in New York City on January 5, 2025 and sell it today you would earn a total of 106.00 from holding New York City or generate 10.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Concept Energy vs. New York City
Performance |
| Timeline |
| New Concept Energy |
| New York City |
New Concept and New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Concept and New York
The main advantage of trading using opposite New Concept and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Concept 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 Concept vs. Marcus Millichap | New Concept vs. J W Mays | New Concept vs. Frp Holdings Ord | New Concept vs. Maui Land Pineapple |
| New York vs. Kennedy Wilson Holdings | New York vs. Belpointe PREP LLC | New York vs. Ucommune International | New York vs. Zillow Group |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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