Correlation Between NYSE Composite and Clene
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Clene 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 Clene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Clene Inc, you can compare the effects of market volatilities on NYSE Composite and Clene 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 Clene. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Clene.
Diversification Opportunities for NYSE Composite and Clene
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and Clene is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Clene Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clene Inc 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 Clene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clene Inc has no effect on the direction of NYSE Composite i.e., NYSE Composite and Clene go up and down completely randomly.
Pair Corralation between NYSE Composite and Clene
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.09 times more return on investment than Clene. However, NYSE Composite is 10.85 times less risky than Clene. It trades about 0.14 of its potential returns per unit of risk. Clene Inc is currently generating about -0.01 per unit of risk. If you would invest 1,596,299 in NYSE Composite on August 25, 2024 and sell it today you would earn a total of 416,046 from holding NYSE Composite or generate 26.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Clene Inc
Performance |
| Timeline |
NYSE Composite and Clene Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Clene Inc
Pair trading matchups for Clene
Pair Trading with NYSE Composite and Clene
The main advantage of trading using opposite NYSE Composite and Clene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Clene 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 Clene will offset losses from the drop in Clene's long position.| NYSE Composite vs. Glacier Bancorp | NYSE Composite vs. LithiumBank Resources Corp | NYSE Composite vs. Stepstone Group | NYSE Composite vs. Pintec Technology Holdings |
| Clene vs. Atlantic Sapphire ASA | Clene vs. Local Bounti Corp | Clene vs. Forafric Global PLC | Clene vs. Forafric Global PLC |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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