Correlation Between NewWave EUR and NewWave Silver
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By analyzing existing cross correlation between NewWave EUR Currency and NewWave Silver Exchange, you can compare the effects of market volatilities on NewWave EUR and NewWave Silver 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 NewWave EUR with a short position of NewWave Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of NewWave EUR and NewWave Silver.
Diversification Opportunities for NewWave EUR and NewWave Silver
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NewWave and NewWave is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding NewWave EUR Currency and NewWave Silver Exchange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NewWave Silver Exchange and NewWave EUR 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 NewWave EUR Currency are associated (or correlated) with NewWave Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NewWave Silver Exchange has no effect on the direction of NewWave EUR i.e., NewWave EUR and NewWave Silver go up and down completely randomly.
Pair Corralation between NewWave EUR and NewWave Silver
Assuming the 90 days trading horizon NewWave EUR Currency is expected to under-perform the NewWave Silver. But the etf apears to be less risky and, when comparing its historical volatility, NewWave EUR Currency is 2.17 times less risky than NewWave Silver. The etf trades about -0.06 of its potential returns per unit of risk. The NewWave Silver Exchange is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 52,400 in NewWave Silver Exchange on September 2, 2024 and sell it today you would earn a total of 100.00 from holding NewWave Silver Exchange or generate 0.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
NewWave EUR Currency vs. NewWave Silver Exchange
Performance |
| Timeline |
| NewWave EUR Currency |
| NewWave Silver Exchange |
NewWave EUR and NewWave Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NewWave EUR and NewWave Silver
The main advantage of trading using opposite NewWave EUR and NewWave Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NewWave EUR position performs unexpectedly, NewWave Silver 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 NewWave Silver will offset losses from the drop in NewWave Silver's long position.| NewWave EUR vs. Europa Metals | NewWave EUR vs. JSE Limited | NewWave EUR vs. British American Tobacco | NewWave EUR vs. Kap Industrial Holdings |
| NewWave Silver vs. NewWave Platinum Exchange | NewWave Silver vs. NewWave USD Currency | NewWave Silver vs. NewWave EUR Currency | NewWave Silver vs. NewWave GBP Currency |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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