Correlation Between NYSE Composite and Cuentas
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Cuentas 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 Cuentas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Cuentas, you can compare the effects of market volatilities on NYSE Composite and Cuentas 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 Cuentas. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Cuentas.
Diversification Opportunities for NYSE Composite and Cuentas
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and Cuentas is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Cuentas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cuentas 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 Cuentas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cuentas has no effect on the direction of NYSE Composite i.e., NYSE Composite and Cuentas go up and down completely randomly.
Pair Corralation between NYSE Composite and Cuentas
Assuming the 90 days trading horizon NYSE Composite is expected to generate 12.09 times less return on investment than Cuentas. But when comparing it to its historical volatility, NYSE Composite is 13.08 times less risky than Cuentas. It trades about 0.08 of its potential returns per unit of risk. Cuentas is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 351.00 in Cuentas on August 25, 2024 and sell it today you would earn a total of 162.00 from holding Cuentas or generate 46.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.99% |
| Values | Daily Returns |
NYSE Composite vs. Cuentas
Performance |
| Timeline |
NYSE Composite and Cuentas Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Cuentas
Pair trading matchups for Cuentas
Pair Trading with NYSE Composite and Cuentas
The main advantage of trading using opposite NYSE Composite and Cuentas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Cuentas 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 Cuentas will offset losses from the drop in Cuentas' long position.| NYSE Composite vs. Glacier Bancorp | NYSE Composite vs. LithiumBank Resources Corp | NYSE Composite vs. Stepstone Group | NYSE Composite vs. Pintec Technology Holdings |
| Cuentas vs. Auddia Inc | Cuentas vs. Bridgeline Digital | Cuentas vs. Mediaco Holding | Cuentas vs. Digital Brands Group |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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