Correlation Between NYSE Composite and Blue Current
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Blue Current 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 Blue Current into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Blue Current Global, you can compare the effects of market volatilities on NYSE Composite and Blue Current 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 Blue Current. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Blue Current.
Diversification Opportunities for NYSE Composite and Blue Current
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and Blue is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Blue Current Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Current Global 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 Blue Current. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Current Global has no effect on the direction of NYSE Composite i.e., NYSE Composite and Blue Current go up and down completely randomly.
Pair Corralation between NYSE Composite and Blue Current
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.0 times more return on investment than Blue Current. However, NYSE Composite is 1.0 times less risky than Blue Current. It trades about -0.05 of its potential returns per unit of risk. Blue Current Global is currently generating about -0.06 per unit of risk. If you would invest 2,016,622 in NYSE Composite on December 1, 2024 and sell it today you would lose (13,803) from holding NYSE Composite or give up 0.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Blue Current Global
Performance |
| Timeline |
NYSE Composite and Blue Current Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Blue Current Global
Pair trading matchups for Blue Current
Pair Trading with NYSE Composite and Blue Current
The main advantage of trading using opposite NYSE Composite and Blue Current positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Blue Current 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 Blue Current will offset losses from the drop in Blue Current's long position.| NYSE Composite vs. Intuitive Surgical | NYSE Composite vs. Franklin Wireless Corp | NYSE Composite vs. Idaho Strategic Resources | NYSE Composite vs. Femasys |
| Blue Current vs. John Hancock Financial | Blue Current vs. Davis Financial Fund | Blue Current vs. Rmb Mendon Financial | Blue Current vs. Transamerica Financial Life |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |