Correlation Between NYSE Composite and America Great
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and America Great 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 NYSE Composite and America Great into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and America Great Health, you can compare the effects of market volatilities on NYSE Composite and America Great 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 NYSE Composite with a short position of America Great. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and America Great.
Diversification Opportunities for NYSE Composite and America Great
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NYSE and America is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and America Great Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on America Great Health and NYSE Composite 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 NYSE Composite are associated (or correlated) with America Great. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of America Great Health has no effect on the direction of NYSE Composite i.e., NYSE Composite and America Great go up and down completely randomly.
Pair Corralation between NYSE Composite and America Great
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.07 times more return on investment than America Great. However, NYSE Composite is 15.22 times less risky than America Great. It trades about 0.28 of its potential returns per unit of risk. America Great Health is currently generating about -0.22 per unit of risk. If you would invest 1,920,711 in NYSE Composite on October 24, 2024 and sell it today you would earn a total of 68,648 from holding NYSE Composite or generate 3.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
NYSE Composite vs. America Great Health
Performance |
| Timeline |
NYSE Composite and America Great Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
America Great Health
Pair trading matchups for America Great
Pair Trading with NYSE Composite and America Great
The main advantage of trading using opposite NYSE Composite and America Great positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, America Great 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 America Great will offset losses from the drop in America Great's long position.| NYSE Composite vs. Datadog | NYSE Composite vs. Nasdaq Inc | NYSE Composite vs. Air Lease | NYSE Composite vs. EvoAir Holdings |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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