Correlation Between NYSE Composite and Antilles Gold
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Antilles 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 Antilles 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 Antilles Gold Limited, you can compare the effects of market volatilities on NYSE Composite and Antilles 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 Antilles Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Antilles Gold.
Diversification Opportunities for NYSE Composite and Antilles Gold
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NYSE and Antilles is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Antilles Gold Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antilles Gold Limited 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 Antilles Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antilles Gold Limited has no effect on the direction of NYSE Composite i.e., NYSE Composite and Antilles Gold go up and down completely randomly.
Pair Corralation between NYSE Composite and Antilles Gold
Assuming the 90 days trading horizon NYSE Composite is expected to generate 39.49 times less return on investment than Antilles Gold. But when comparing it to its historical volatility, NYSE Composite is 54.96 times less risky than Antilles Gold. It trades about 0.28 of its potential returns per unit of risk. Antilles Gold Limited is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 0.12 in Antilles Gold Limited on November 4, 2024 and sell it today you would earn a total of 0.16 from holding Antilles Gold Limited or generate 133.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
NYSE Composite vs. Antilles Gold Limited
Performance |
| Timeline |
NYSE Composite and Antilles Gold Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Antilles Gold Limited
Pair trading matchups for Antilles Gold
Pair Trading with NYSE Composite and Antilles Gold
The main advantage of trading using opposite NYSE Composite and Antilles Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Antilles 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 Antilles Gold will offset losses from the drop in Antilles Gold's long position.| NYSE Composite vs. Arrow Electronics | NYSE Composite vs. Cirmaker Technology | NYSE Composite vs. Zhihu Inc ADR | NYSE Composite vs. Weibo Corp |
| Antilles Gold vs. Antioquia Gold | Antilles Gold vs. Asante Gold | Antilles Gold vs. Allegiant Gold | Antilles Gold vs. Big Ridge Gold |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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