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
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and Avinger is -0.67. 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 0.21 times more return on investment than Avinger. However, NYSE Composite is 4.72 times less risky than Avinger. It trades about 0.24 of its potential returns per unit of risk. Avinger is currently generating about -0.02 per unit of risk. If you would invest 1,954,967 in NYSE Composite on August 28, 2024 and sell it today you would earn a total of 67,069 from holding NYSE Composite or generate 3.43% 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. 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. Hooker Furniture | NYSE Composite vs. Hudson Pacific Properties | NYSE Composite vs. Canlan Ice Sports | NYSE Composite vs. Boston Properties |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |