Correlation Between NYSE Composite and Antioquia Gold
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Antioquia Gold 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 Antioquia Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Antioquia Gold, you can compare the effects of market volatilities on NYSE Composite and Antioquia Gold 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 Antioquia Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Antioquia Gold.
Diversification Opportunities for NYSE Composite and Antioquia Gold
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NYSE and Antioquia is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Antioquia Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antioquia Gold 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 Antioquia Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antioquia Gold has no effect on the direction of NYSE Composite i.e., NYSE Composite and Antioquia Gold go up and down completely randomly.
Pair Corralation between NYSE Composite and Antioquia Gold
Assuming the 90 days trading horizon NYSE Composite is expected to generate 18.1 times less return on investment than Antioquia Gold. But when comparing it to its historical volatility, NYSE Composite is 35.27 times less risky than Antioquia Gold. It trades about 0.42 of its potential returns per unit of risk. Antioquia Gold is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1.00 in Antioquia Gold on September 1, 2024 and sell it today you would earn a total of 1.00 from holding Antioquia Gold or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
NYSE Composite vs. Antioquia Gold
Performance |
| Timeline |
NYSE Composite and Antioquia Gold Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Antioquia Gold
Pair trading matchups for Antioquia Gold
Pair Trading with NYSE Composite and Antioquia Gold
The main advantage of trading using opposite NYSE Composite and Antioquia Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Antioquia Gold 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 Antioquia Gold will offset losses from the drop in Antioquia Gold's long position.| NYSE Composite vs. Acumen Pharmaceuticals | NYSE Composite vs. Mind Medicine | NYSE Composite vs. NL Industries | NYSE Composite vs. Ecovyst |
| Antioquia Gold vs. Argo Gold | Antioquia Gold vs. Blue Star Gold | Antioquia Gold vs. Angkor Resources Corp | Antioquia Gold vs. Advance Gold Corp |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |