Correlation Between NYSE Composite and Capstone Green
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Capstone Green 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 Capstone Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Capstone Green Energy, you can compare the effects of market volatilities on NYSE Composite and Capstone Green 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 Capstone Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Capstone Green.
Diversification Opportunities for NYSE Composite and Capstone Green
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and Capstone is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Capstone Green Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capstone Green Energy 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 Capstone Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capstone Green Energy has no effect on the direction of NYSE Composite i.e., NYSE Composite and Capstone Green go up and down completely randomly.
Pair Corralation between NYSE Composite and Capstone Green
If you would invest 1,941,627 in NYSE Composite on August 31, 2024 and sell it today you would earn a total of 79,355 from holding NYSE Composite or generate 4.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
NYSE Composite vs. Capstone Green Energy
Performance |
| Timeline |
NYSE Composite and Capstone Green Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Capstone Green Energy
Pair trading matchups for Capstone Green
Pair Trading with NYSE Composite and Capstone Green
The main advantage of trading using opposite NYSE Composite and Capstone Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Capstone Green 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 Capstone Green will offset losses from the drop in Capstone Green's long position.| NYSE Composite vs. Nextplat Corp | NYSE Composite vs. Qualys Inc | NYSE Composite vs. Cadence Design Systems | NYSE Composite vs. Asure Software |
| Capstone Green vs. Nordson | Capstone Green vs. CVD Equipment | Capstone Green vs. Barnes Group | Capstone Green vs. Ametek Inc |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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