Correlation Between NYSE Composite and Croghan Bancshares
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Croghan Bancshares 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 Croghan Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Croghan Bancshares, you can compare the effects of market volatilities on NYSE Composite and Croghan Bancshares 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 Croghan Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Croghan Bancshares.
Diversification Opportunities for NYSE Composite and Croghan Bancshares
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NYSE and Croghan is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Croghan Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Croghan Bancshares 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 Croghan Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Croghan Bancshares has no effect on the direction of NYSE Composite i.e., NYSE Composite and Croghan Bancshares go up and down completely randomly.
Pair Corralation between NYSE Composite and Croghan Bancshares
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.69 times more return on investment than Croghan Bancshares. However, NYSE Composite is 1.46 times less risky than Croghan Bancshares. It trades about 0.38 of its potential returns per unit of risk. Croghan Bancshares is currently generating about 0.11 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Croghan Bancshares
Performance |
| Timeline |
NYSE Composite and Croghan Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Croghan Bancshares
Pair trading matchups for Croghan Bancshares
Pair Trading with NYSE Composite and Croghan Bancshares
The main advantage of trading using opposite NYSE Composite and Croghan Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Croghan Bancshares 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 Croghan Bancshares will offset losses from the drop in Croghan Bancshares' long position.| NYSE Composite vs. Kite Realty Group | NYSE Composite vs. Tradeweb Markets | NYSE Composite vs. Meiwu Technology Co | NYSE Composite vs. Uber Technologies |
| Croghan Bancshares vs. Consol Energy | Croghan Bancshares vs. Dave Busters Entertainment | Croghan Bancshares vs. Xponential Fitness | Croghan Bancshares vs. Eldorado Gold Corp |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |