Correlation Between NYSE Composite and Accelerate Diagnostics
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Accelerate Diagnostics 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 Accelerate Diagnostics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Accelerate Diagnostics, you can compare the effects of market volatilities on NYSE Composite and Accelerate Diagnostics 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 Accelerate Diagnostics. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Accelerate Diagnostics.
Diversification Opportunities for NYSE Composite and Accelerate Diagnostics
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between NYSE and Accelerate is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Accelerate Diagnostics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accelerate Diagnostics 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 Accelerate Diagnostics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accelerate Diagnostics has no effect on the direction of NYSE Composite i.e., NYSE Composite and Accelerate Diagnostics go up and down completely randomly.
Pair Corralation between NYSE Composite and Accelerate Diagnostics
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.19 times more return on investment than Accelerate Diagnostics. However, NYSE Composite is 5.28 times less risky than Accelerate Diagnostics. It trades about 0.41 of its potential returns per unit of risk. Accelerate Diagnostics is currently generating about -0.21 per unit of risk. If you would invest 1,925,354 in NYSE Composite on September 2, 2024 and sell it today you would earn a total of 101,850 from holding NYSE Composite or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Accelerate Diagnostics
Performance |
| Timeline |
NYSE Composite and Accelerate Diagnostics Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Accelerate Diagnostics
Pair trading matchups for Accelerate Diagnostics
Pair Trading with NYSE Composite and Accelerate Diagnostics
The main advantage of trading using opposite NYSE Composite and Accelerate Diagnostics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Accelerate Diagnostics 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 Accelerate Diagnostics will offset losses from the drop in Accelerate Diagnostics' long position.| NYSE Composite vs. Simon Property Group | NYSE Composite vs. Merit Medical Systems | NYSE Composite vs. Catalent | NYSE Composite vs. Titan Machinery |
| Accelerate Diagnostics vs. CVRx Inc | Accelerate Diagnostics vs. Neuropace | Accelerate Diagnostics vs. Anika Therapeutics | Accelerate Diagnostics vs. Axogen Inc |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |