Correlation Between NYSE Composite and Actelis Networks
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Actelis Networks 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 Actelis Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Actelis Networks, you can compare the effects of market volatilities on NYSE Composite and Actelis Networks 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 Actelis Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Actelis Networks.
Diversification Opportunities for NYSE Composite and Actelis Networks
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and Actelis is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Actelis Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Actelis Networks 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 Actelis Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Actelis Networks has no effect on the direction of NYSE Composite i.e., NYSE Composite and Actelis Networks go up and down completely randomly.
Pair Corralation between NYSE Composite and Actelis Networks
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.21 times more return on investment than Actelis Networks. However, NYSE Composite is 4.82 times less risky than Actelis Networks. It trades about 0.29 of its potential returns per unit of risk. Actelis Networks is currently generating about -0.01 per unit of risk. If you would invest 1,941,627 in NYSE Composite on August 31, 2024 and sell it today you would earn a total of 79,355 from holding NYSE Composite or generate 4.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Actelis Networks
Performance |
| Timeline |
NYSE Composite and Actelis Networks Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Actelis Networks
Pair trading matchups for Actelis Networks
Pair Trading with NYSE Composite and Actelis Networks
The main advantage of trading using opposite NYSE Composite and Actelis Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Actelis Networks 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 Actelis Networks will offset losses from the drop in Actelis Networks' long position.| NYSE Composite vs. Nextplat Corp | NYSE Composite vs. Qualys Inc | NYSE Composite vs. Cadence Design Systems | NYSE Composite vs. Asure Software |
| Actelis Networks vs. ClearOne | Actelis Networks vs. Siyata Mobile | Actelis Networks vs. SatixFy Communications | Actelis Networks vs. Optical Cable |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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