Correlation Between NYSE Composite and Atara Biotherapeutics
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Atara Biotherapeutics 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 Atara Biotherapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Atara Biotherapeutics, you can compare the effects of market volatilities on NYSE Composite and Atara Biotherapeutics 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 Atara Biotherapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Atara Biotherapeutics.
Diversification Opportunities for NYSE Composite and Atara Biotherapeutics
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NYSE and Atara is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Atara Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atara Biotherapeutics 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 Atara Biotherapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atara Biotherapeutics has no effect on the direction of NYSE Composite i.e., NYSE Composite and Atara Biotherapeutics go up and down completely randomly.
Pair Corralation between NYSE Composite and Atara Biotherapeutics
Assuming the 90 days trading horizon NYSE Composite is expected to generate 11.56 times less return on investment than Atara Biotherapeutics. But when comparing it to its historical volatility, NYSE Composite is 13.26 times less risky than Atara Biotherapeutics. It trades about 0.24 of its potential returns per unit of risk. Atara Biotherapeutics is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 883.00 in Atara Biotherapeutics on August 28, 2024 and sell it today you would earn a total of 329.00 from holding Atara Biotherapeutics or generate 37.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Atara Biotherapeutics
Performance |
| Timeline |
NYSE Composite and Atara Biotherapeutics Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Atara Biotherapeutics
Pair trading matchups for Atara Biotherapeutics
Pair Trading with NYSE Composite and Atara Biotherapeutics
The main advantage of trading using opposite NYSE Composite and Atara Biotherapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Atara Biotherapeutics 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 Atara Biotherapeutics will offset losses from the drop in Atara Biotherapeutics' long position.| NYSE Composite vs. Vita Coco | NYSE Composite vs. Franklin Wireless Corp | NYSE Composite vs. Ambev SA ADR | NYSE Composite vs. Toro Co |
| Atara Biotherapeutics vs. Eliem Therapeutics | Atara Biotherapeutics vs. Scpharmaceuticals | Atara Biotherapeutics vs. Milestone Pharmaceuticals | Atara Biotherapeutics vs. Seres Therapeutics |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Global Correlations Find global opportunities by holding instruments from different markets |