Correlation Between NYSE Composite and CMUV Bancorp
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and CMUV Bancorp 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 CMUV Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and CMUV Bancorp, you can compare the effects of market volatilities on NYSE Composite and CMUV Bancorp 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 CMUV Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and CMUV Bancorp.
Diversification Opportunities for NYSE Composite and CMUV Bancorp
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between NYSE and CMUV is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and CMUV Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CMUV Bancorp 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 CMUV Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CMUV Bancorp has no effect on the direction of NYSE Composite i.e., NYSE Composite and CMUV Bancorp go up and down completely randomly.
Pair Corralation between NYSE Composite and CMUV Bancorp
Assuming the 90 days trading horizon NYSE Composite is expected to generate 2.07 times less return on investment than CMUV Bancorp. But when comparing it to its historical volatility, NYSE Composite is 2.26 times less risky than CMUV Bancorp. It trades about 0.28 of its potential returns per unit of risk. CMUV Bancorp is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 2,060 in CMUV Bancorp on November 4, 2024 and sell it today you would earn a total of 165.00 from holding CMUV Bancorp or generate 8.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. CMUV Bancorp
Performance |
| Timeline |
NYSE Composite and CMUV Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
CMUV Bancorp
Pair trading matchups for CMUV Bancorp
Pair Trading with NYSE Composite and CMUV Bancorp
The main advantage of trading using opposite NYSE Composite and CMUV Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, CMUV Bancorp 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 CMUV Bancorp will offset losses from the drop in CMUV Bancorp's long position.| NYSE Composite vs. Arrow Electronics | NYSE Composite vs. Cirmaker Technology | NYSE Composite vs. Zhihu Inc ADR | NYSE Composite vs. Weibo Corp |
| CMUV Bancorp vs. Pioneer Bankcorp | CMUV Bancorp vs. Summit Bancshares | CMUV Bancorp vs. Liberty Northwest Bancorp | CMUV Bancorp vs. First Community |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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