Correlation Between NYSE Composite and Atomera
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Atomera 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 Atomera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Atomera, you can compare the effects of market volatilities on NYSE Composite and Atomera 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 Atomera. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Atomera.
Diversification Opportunities for NYSE Composite and Atomera
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and Atomera is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Atomera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atomera 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 Atomera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atomera has no effect on the direction of NYSE Composite i.e., NYSE Composite and Atomera go up and down completely randomly.
Pair Corralation between NYSE Composite and Atomera
Assuming the 90 days trading horizon NYSE Composite is expected to generate 8.83 times less return on investment than Atomera. But when comparing it to its historical volatility, NYSE Composite is 10.09 times less risky than Atomera. It trades about 0.29 of its potential returns per unit of risk. Atomera is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 427.00 in Atomera on August 31, 2024 and sell it today you would earn a total of 157.00 from holding Atomera or generate 36.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Atomera
Performance |
| Timeline |
NYSE Composite and Atomera Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Atomera
Pair trading matchups for Atomera
Pair Trading with NYSE Composite and Atomera
The main advantage of trading using opposite NYSE Composite and Atomera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Atomera 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 Atomera will offset losses from the drop in Atomera's long position.| NYSE Composite vs. Nextplat Corp | NYSE Composite vs. Qualys Inc | NYSE Composite vs. Cadence Design Systems | NYSE Composite vs. Asure Software |
| Atomera vs. Axcelis Technologies | Atomera vs. inTest | Atomera vs. Lam Research Corp | Atomera vs. Photronics |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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