Correlation Between NYSE Composite and BKV
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and BKV 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 BKV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and BKV Corporation, you can compare the effects of market volatilities on NYSE Composite and BKV 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 BKV. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and BKV.
Diversification Opportunities for NYSE Composite and BKV
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and BKV is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and BKV Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BKV Corporation 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 BKV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BKV Corporation has no effect on the direction of NYSE Composite i.e., NYSE Composite and BKV go up and down completely randomly.
Pair Corralation between NYSE Composite and BKV
Assuming the 90 days trading horizon NYSE Composite is expected to generate 4.18 times less return on investment than BKV. But when comparing it to its historical volatility, NYSE Composite is 3.46 times less risky than BKV. It trades about 0.36 of its potential returns per unit of risk. BKV Corporation is currently generating about 0.44 of returns per unit of risk over similar time horizon. If you would invest 1,787 in BKV Corporation on September 5, 2024 and sell it today you would earn a total of 389.00 from holding BKV Corporation or generate 21.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. BKV Corp.
Performance |
| Timeline |
NYSE Composite and BKV Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
BKV Corporation
Pair trading matchups for BKV
Pair Trading with NYSE Composite and BKV
The main advantage of trading using opposite NYSE Composite and BKV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, BKV 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 BKV will offset losses from the drop in BKV's long position.| NYSE Composite vs. Air Products and | NYSE Composite vs. Playtika Holding Corp | NYSE Composite vs. PepsiCo | NYSE Composite vs. NETGEAR |
| BKV vs. Antero Resources Corp | BKV vs. Empire Petroleum Corp | BKV vs. Permian Resources | BKV vs. SandRidge Energy |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |