Correlation Between NYSE Composite and Carisma Therapeutics
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Carisma 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 Carisma 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 Carisma Therapeutics, you can compare the effects of market volatilities on NYSE Composite and Carisma 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 Carisma Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Carisma Therapeutics.
Diversification Opportunities for NYSE Composite and Carisma Therapeutics
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and Carisma is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Carisma Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carisma 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 Carisma Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carisma Therapeutics has no effect on the direction of NYSE Composite i.e., NYSE Composite and Carisma Therapeutics go up and down completely randomly.
Pair Corralation between NYSE Composite and Carisma Therapeutics
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.22 times more return on investment than Carisma Therapeutics. However, NYSE Composite is 4.5 times less risky than Carisma Therapeutics. It trades about 0.38 of its potential returns per unit of risk. Carisma Therapeutics is currently generating about -0.35 per unit of risk. If you would invest 1,924,339 in NYSE Composite on September 4, 2024 and sell it today you would earn a total of 96,983 from holding NYSE Composite or generate 5.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Carisma Therapeutics
Performance |
| Timeline |
NYSE Composite and Carisma Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Carisma Therapeutics
Pair trading matchups for Carisma Therapeutics
Pair Trading with NYSE Composite and Carisma Therapeutics
The main advantage of trading using opposite NYSE Composite and Carisma Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Carisma 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 Carisma Therapeutics will offset losses from the drop in Carisma Therapeutics' long position.| NYSE Composite vs. Kite Realty Group | NYSE Composite vs. Tradeweb Markets | NYSE Composite vs. Meiwu Technology Co | NYSE Composite vs. Uber Technologies |
| Carisma Therapeutics vs. Cns Pharmaceuticals | Carisma Therapeutics vs. ZyVersa Therapeutics | Carisma Therapeutics vs. Immix Biopharma | Carisma Therapeutics vs. Hepion Pharmaceuticals |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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