Correlation Between NYSE Composite and CIT
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and CIT 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 CIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and CIT Group, you can compare the effects of market volatilities on NYSE Composite and CIT 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 CIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and CIT.
Diversification Opportunities for NYSE Composite and CIT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NYSE and CIT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and CIT Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIT Group 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 CIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIT Group has no effect on the direction of NYSE Composite i.e., NYSE Composite and CIT go up and down completely randomly.
Pair Corralation between NYSE Composite and CIT
If you would invest (100.00) in CIT Group on November 29, 2024 and sell it today you would earn a total of 100.00 from holding CIT Group or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
NYSE Composite vs. CIT Group
Performance |
| Timeline |
NYSE Composite and CIT Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
CIT Group
Pair trading matchups for CIT
Pair Trading with NYSE Composite and CIT
The main advantage of trading using opposite NYSE Composite and CIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, CIT 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 CIT will offset losses from the drop in CIT's long position.| NYSE Composite vs. Kenon Holdings | NYSE Composite vs. American Electric Power | NYSE Composite vs. Mesa Air Group | NYSE Composite vs. Suburban Propane Partners |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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