Correlation Between NYSE Composite and ASGN
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and ASGN 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 ASGN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and ASGN Inc, you can compare the effects of market volatilities on NYSE Composite and ASGN 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 ASGN. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and ASGN.
Diversification Opportunities for NYSE Composite and ASGN
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between NYSE and ASGN is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and ASGN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASGN Inc 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 ASGN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASGN Inc has no effect on the direction of NYSE Composite i.e., NYSE Composite and ASGN go up and down completely randomly.
Pair Corralation between NYSE Composite and ASGN
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.34 times more return on investment than ASGN. However, NYSE Composite is 2.92 times less risky than ASGN. It trades about 0.09 of its potential returns per unit of risk. ASGN Inc is currently generating about -0.05 per unit of risk. If you would invest 1,691,113 in NYSE Composite on November 26, 2024 and sell it today you would earn a total of 297,040 from holding NYSE Composite or generate 17.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 99.63% |
Values | Daily Returns |
NYSE Composite vs. ASGN Inc
Performance |
Timeline |
NYSE Composite and ASGN Volatility Contrast
Predicted Return Density |
Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
ASGN Inc
Pair trading matchups for ASGN
Pair Trading with NYSE Composite and ASGN
The main advantage of trading using opposite NYSE Composite and ASGN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, ASGN 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 ASGN will offset losses from the drop in ASGN's long position.NYSE Composite vs. Estee Lauder Companies | ||
NYSE Composite vs. Procter Gamble | ||
NYSE Composite vs. Pearson PLC ADR | ||
NYSE Composite vs. New Oriental Education |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
Fundamental Analysis View fundamental data based on most recent published financial statements | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing |