Correlation Between NYSE Composite and Chicken Soup
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Chicken Soup 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 Chicken Soup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Chicken Soup for, you can compare the effects of market volatilities on NYSE Composite and Chicken Soup 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 Chicken Soup. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Chicken Soup.
Diversification Opportunities for NYSE Composite and Chicken Soup
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and Chicken is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Chicken Soup for in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chicken Soup for 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 Chicken Soup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chicken Soup for has no effect on the direction of NYSE Composite i.e., NYSE Composite and Chicken Soup go up and down completely randomly.
Pair Corralation between NYSE Composite and Chicken Soup
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.06 times more return on investment than Chicken Soup. However, NYSE Composite is 17.74 times less risky than Chicken Soup. It trades about 0.14 of its potential returns per unit of risk. Chicken Soup for is currently generating about -0.14 per unit of risk. If you would invest 1,613,685 in NYSE Composite on September 2, 2024 and sell it today you would earn a total of 413,519 from holding NYSE Composite or generate 25.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 58.06% |
| Values | Daily Returns |
NYSE Composite vs. Chicken Soup for
Performance |
| Timeline |
NYSE Composite and Chicken Soup Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Chicken Soup for
Pair trading matchups for Chicken Soup
Pair Trading with NYSE Composite and Chicken Soup
The main advantage of trading using opposite NYSE Composite and Chicken Soup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Chicken Soup 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 Chicken Soup will offset losses from the drop in Chicken Soup's long position.| NYSE Composite vs. Simon Property Group | NYSE Composite vs. Merit Medical Systems | NYSE Composite vs. Catalent | NYSE Composite vs. Titan Machinery |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |