Correlation Between NYSE Composite and IShares Future
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and IShares Future 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 IShares Future into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and iShares Future AI, you can compare the effects of market volatilities on NYSE Composite and IShares Future 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 IShares Future. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and IShares Future.
Diversification Opportunities for NYSE Composite and IShares Future
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NYSE and IShares is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and iShares Future AI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Future AI 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 IShares Future. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Future AI has no effect on the direction of NYSE Composite i.e., NYSE Composite and IShares Future go up and down completely randomly.
Pair Corralation between NYSE Composite and IShares Future
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.48 times more return on investment than IShares Future. However, NYSE Composite is 2.08 times less risky than IShares Future. It trades about 0.1 of its potential returns per unit of risk. iShares Future AI is currently generating about 0.04 per unit of risk. If you would invest 1,679,840 in NYSE Composite on September 14, 2024 and sell it today you would earn a total of 297,069 from holding NYSE Composite or generate 17.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. iShares Future AI
Performance |
| Timeline |
NYSE Composite and IShares Future Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
iShares Future AI
Pair trading matchups for IShares Future
Pair Trading with NYSE Composite and IShares Future
The main advantage of trading using opposite NYSE Composite and IShares Future positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, IShares Future 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 IShares Future will offset losses from the drop in IShares Future's long position.| NYSE Composite vs. Air Products and | NYSE Composite vs. Allient | NYSE Composite vs. Ecovyst | NYSE Composite vs. CTS Corporation |
| IShares Future vs. Freedom Day Dividend | IShares Future vs. Franklin Templeton ETF | IShares Future vs. iShares MSCI China | IShares Future vs. Tidal Trust II |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |