Correlation Between NYSE Composite and American National
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and American National 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 American National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and American National Bankshares, you can compare the effects of market volatilities on NYSE Composite and American National 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 American National. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and American National.
Diversification Opportunities for NYSE Composite and American National
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and American is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and American National Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American National 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 American National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American National has no effect on the direction of NYSE Composite i.e., NYSE Composite and American National go up and down completely randomly.
Pair Corralation between NYSE Composite and American National
If you would invest 1,954,967 in NYSE Composite on August 28, 2024 and sell it today you would earn a total of 66,978 from holding NYSE Composite or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
NYSE Composite vs. American National Bankshares
Performance |
| Timeline |
NYSE Composite and American National Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
American National Bankshares
Pair trading matchups for American National
Pair Trading with NYSE Composite and American National
The main advantage of trading using opposite NYSE Composite and American National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, American National 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 American National will offset losses from the drop in American National's long position.| NYSE Composite vs. Vita Coco | NYSE Composite vs. Franklin Wireless Corp | NYSE Composite vs. Ambev SA ADR | NYSE Composite vs. Toro Co |
| American National vs. First Northwest Bancorp | American National vs. Community West Bancshares | American National vs. First Financial Northwest | American National vs. Great Southern Bancorp |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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