Correlation Between NYSE Composite and Ambu AS
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Ambu AS 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 Ambu AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Ambu AS, you can compare the effects of market volatilities on NYSE Composite and Ambu AS 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 Ambu AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Ambu AS.
Diversification Opportunities for NYSE Composite and Ambu AS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NYSE and Ambu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Ambu AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambu AS 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 Ambu AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambu AS has no effect on the direction of NYSE Composite i.e., NYSE Composite and Ambu AS go up and down completely randomly.
Pair Corralation between NYSE Composite and Ambu AS
If you would invest 1,522,858 in NYSE Composite on January 15, 2025 and sell it today you would earn a total of 320,367 from holding NYSE Composite or generate 21.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.2% |
| Values | Daily Returns |
NYSE Composite vs. Ambu AS
Performance |
| Timeline |
NYSE Composite and Ambu AS Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Ambu AS
Pair trading matchups for Ambu AS
Pair Trading with NYSE Composite and Ambu AS
The main advantage of trading using opposite NYSE Composite and Ambu AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Ambu AS 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 Ambu AS will offset losses from the drop in Ambu AS's long position.| NYSE Composite vs. Dave Busters Entertainment | NYSE Composite vs. Lizhi Inc | NYSE Composite vs. Unilever PLC ADR | NYSE Composite vs. BCE Inc |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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