Correlation Between NYSE Composite and Catalyst/map Global
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Catalyst/map Global 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 Catalyst/map Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Catalystmap Global Equity, you can compare the effects of market volatilities on NYSE Composite and Catalyst/map Global 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 Catalyst/map Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Catalyst/map Global.
Diversification Opportunities for NYSE Composite and Catalyst/map Global
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NYSE and Catalyst/map is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Catalystmap Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystmap Global Equity 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 Catalyst/map Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystmap Global Equity has no effect on the direction of NYSE Composite i.e., NYSE Composite and Catalyst/map Global go up and down completely randomly.
Pair Corralation between NYSE Composite and Catalyst/map Global
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.34 times more return on investment than Catalyst/map Global. However, NYSE Composite is 1.34 times more volatile than Catalystmap Global Equity. It trades about 0.36 of its potential returns per unit of risk. Catalystmap Global Equity is currently generating about 0.14 per unit of risk. If you would invest 1,924,339 in NYSE Composite on September 5, 2024 and sell it today you would earn a total of 94,521 from holding NYSE Composite or generate 4.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Catalystmap Global Equity
Performance |
| Timeline |
NYSE Composite and Catalyst/map Global Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Catalystmap Global Equity
Pair trading matchups for Catalyst/map Global
Pair Trading with NYSE Composite and Catalyst/map Global
The main advantage of trading using opposite NYSE Composite and Catalyst/map Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Catalyst/map Global 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 Catalyst/map Global will offset losses from the drop in Catalyst/map Global's long position.| NYSE Composite vs. Air Products and | NYSE Composite vs. Playtika Holding Corp | NYSE Composite vs. PepsiCo | NYSE Composite vs. NETGEAR |
| Catalyst/map Global vs. Catalystsmh High Income | Catalyst/map Global vs. Catalystsmh High Income | Catalyst/map Global vs. Catalystsmh High Income | Catalyst/map Global vs. Catalyst Mlp Infrastructure |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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