Correlation Between NYSE Composite and BioXcel Therapeutics
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and BioXcel Therapeutics 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 BioXcel Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and BioXcel Therapeutics, you can compare the effects of market volatilities on NYSE Composite and BioXcel Therapeutics 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 BioXcel Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and BioXcel Therapeutics.
Diversification Opportunities for NYSE Composite and BioXcel Therapeutics
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and BioXcel is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and BioXcel Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioXcel Therapeutics 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 BioXcel Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioXcel Therapeutics has no effect on the direction of NYSE Composite i.e., NYSE Composite and BioXcel Therapeutics go up and down completely randomly.
Pair Corralation between NYSE Composite and BioXcel Therapeutics
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.09 times more return on investment than BioXcel Therapeutics. However, NYSE Composite is 11.74 times less risky than BioXcel Therapeutics. It trades about 0.11 of its potential returns per unit of risk. BioXcel Therapeutics is currently generating about -0.09 per unit of risk. If you would invest 1,550,264 in NYSE Composite on August 31, 2024 and sell it today you would earn a total of 476,940 from holding NYSE Composite or generate 30.77% 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. BioXcel Therapeutics
Performance |
| Timeline |
NYSE Composite and BioXcel Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
BioXcel Therapeutics
Pair trading matchups for BioXcel Therapeutics
Pair Trading with NYSE Composite and BioXcel Therapeutics
The main advantage of trading using opposite NYSE Composite and BioXcel Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, BioXcel Therapeutics 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 BioXcel Therapeutics will offset losses from the drop in BioXcel Therapeutics' long position.| NYSE Composite vs. Nextplat Corp | NYSE Composite vs. Qualys Inc | NYSE Composite vs. Cadence Design Systems | NYSE Composite vs. Asure Software |
| BioXcel Therapeutics vs. Terns Pharmaceuticals | BioXcel Therapeutics vs. Amylyx Pharmaceuticals | BioXcel Therapeutics vs. Acumen Pharmaceuticals | BioXcel Therapeutics vs. Inozyme Pharma |
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
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| 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 | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |