Correlation Between NYSE Composite and Blue Capital
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Blue Capital 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 Capital 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 Capital Reinsurance, you can compare the effects of market volatilities on NYSE Composite and Blue Capital 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 Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Blue Capital.
Diversification Opportunities for NYSE Composite and Blue Capital
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and Blue is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Blue Capital Reinsurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Capital Reinsurance 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 Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Capital Reinsurance has no effect on the direction of NYSE Composite i.e., NYSE Composite and Blue Capital go up and down completely randomly.
Pair Corralation between NYSE Composite and Blue Capital
If you would invest 1,613,685 in NYSE Composite on September 2, 2024 and sell it today you would earn a total of 413,519 from holding NYSE Composite or generate 25.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
NYSE Composite vs. Blue Capital Reinsurance
Performance |
| Timeline |
NYSE Composite and Blue Capital Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Blue Capital Reinsurance
Pair trading matchups for Blue Capital
Pair Trading with NYSE Composite and Blue Capital
The main advantage of trading using opposite NYSE Composite and Blue Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Blue Capital 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 Capital will offset losses from the drop in Blue Capital's long position.| NYSE Composite vs. Simon Property Group | NYSE Composite vs. Merit Medical Systems | NYSE Composite vs. Catalent | NYSE Composite vs. Titan Machinery |
| Blue Capital vs. Eastman Chemical | Blue Capital vs. Chemours Co | Blue Capital vs. The Mosaic | Blue Capital vs. CF Industries Holdings |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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