Correlation Between NYSE Composite and Beyond Medical
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Beyond Medical 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 Beyond Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Beyond Medical Technologies, you can compare the effects of market volatilities on NYSE Composite and Beyond Medical 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 Beyond Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Beyond Medical.
Diversification Opportunities for NYSE Composite and Beyond Medical
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and Beyond is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Beyond Medical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beyond Medical Techn 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 Beyond Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beyond Medical Techn has no effect on the direction of NYSE Composite i.e., NYSE Composite and Beyond Medical go up and down completely randomly.
Pair Corralation between NYSE Composite and Beyond Medical
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.16 times more return on investment than Beyond Medical. However, NYSE Composite is 6.23 times less risky than Beyond Medical. It trades about 0.17 of its potential returns per unit of risk. Beyond Medical Technologies is currently generating about 0.02 per unit of risk. If you would invest 1,901,742 in NYSE Composite on September 2, 2024 and sell it today you would earn a total of 125,462 from holding NYSE Composite or generate 6.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
NYSE Composite vs. Beyond Medical Technologies
Performance |
| Timeline |
NYSE Composite and Beyond Medical Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Beyond Medical Technologies
Pair trading matchups for Beyond Medical
Pair Trading with NYSE Composite and Beyond Medical
The main advantage of trading using opposite NYSE Composite and Beyond Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Beyond Medical 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 Beyond Medical will offset losses from the drop in Beyond Medical's long position.| NYSE Composite vs. Simon Property Group | NYSE Composite vs. Merit Medical Systems | NYSE Composite vs. Catalent | NYSE Composite vs. Titan Machinery |
| Beyond Medical vs. CECO Environmental Corp | Beyond Medical vs. Allegheny Technologies Incorporated | Beyond Medical vs. Magnite | Beyond Medical vs. Global E Online |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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