Correlation Between NYSE Composite and Avinger
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Avinger 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 Avinger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Avinger, you can compare the effects of market volatilities on NYSE Composite and Avinger 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 Avinger. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Avinger.
Diversification Opportunities for NYSE Composite and Avinger
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NYSE and Avinger is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Avinger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avinger 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 Avinger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avinger has no effect on the direction of NYSE Composite i.e., NYSE Composite and Avinger go up and down completely randomly.
Pair Corralation between NYSE Composite and Avinger
Assuming the 90 days trading horizon NYSE Composite is expected to generate 35.3 times less return on investment than Avinger. But when comparing it to its historical volatility, NYSE Composite is 53.46 times less risky than Avinger. It trades about 0.21 of its potential returns per unit of risk. Avinger is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 48.00 in Avinger on October 21, 2024 and sell it today you would earn a total of 12.00 from holding Avinger or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Avinger
Performance |
| Timeline |
NYSE Composite and Avinger Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Avinger
Pair trading matchups for Avinger
Pair Trading with NYSE Composite and Avinger
The main advantage of trading using opposite NYSE Composite and Avinger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Avinger 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 Avinger will offset losses from the drop in Avinger's long position.| NYSE Composite vs. Chart Industries | NYSE Composite vs. Valneva SE ADR | NYSE Composite vs. Schweiter Technologies AG | NYSE Composite vs. Primoris Services |
| Avinger vs. GlucoTrack | Avinger vs. Nexgel Inc | Avinger vs. Sharps Technology | Avinger vs. Innovative Eyewear |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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