Correlation Between NYSE Composite and CHIR
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and CHIR 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 CHIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and CHIR, you can compare the effects of market volatilities on NYSE Composite and CHIR 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 CHIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and CHIR.
Diversification Opportunities for NYSE Composite and CHIR
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NYSE and CHIR is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and CHIR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHIR 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 CHIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHIR has no effect on the direction of NYSE Composite i.e., NYSE Composite and CHIR go up and down completely randomly.
Pair Corralation between NYSE Composite and CHIR
If you would invest 1,588,163 in NYSE Composite on September 14, 2024 and sell it today you would earn a total of 388,746 from holding NYSE Composite or generate 24.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.37% |
| Values | Daily Returns |
NYSE Composite vs. CHIR
Performance |
| Timeline |
NYSE Composite and CHIR Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
CHIR
Pair trading matchups for CHIR
Pair Trading with NYSE Composite and CHIR
The main advantage of trading using opposite NYSE Composite and CHIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, CHIR 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 CHIR will offset losses from the drop in CHIR's long position.| NYSE Composite vs. Air Products and | NYSE Composite vs. Allient | NYSE Composite vs. Ecovyst | NYSE Composite vs. CTS Corporation |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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