Correlation Between NYSE Composite and Elis SA
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Elis SA 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 Elis SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Elis SA, you can compare the effects of market volatilities on NYSE Composite and Elis SA 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 Elis SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Elis SA.
Diversification Opportunities for NYSE Composite and Elis SA
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and Elis is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Elis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elis SA 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 Elis SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elis SA has no effect on the direction of NYSE Composite i.e., NYSE Composite and Elis SA go up and down completely randomly.
Pair Corralation between NYSE Composite and Elis SA
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.33 times more return on investment than Elis SA. However, NYSE Composite is 3.08 times less risky than Elis SA. It trades about 0.14 of its potential returns per unit of risk. Elis SA is currently generating about 0.01 per unit of risk. If you would invest 1,800,696 in NYSE Composite on September 1, 2024 and sell it today you would earn a total of 226,508 from holding NYSE Composite or generate 12.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
NYSE Composite vs. Elis SA
Performance |
| Timeline |
NYSE Composite and Elis SA Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Elis SA
Pair trading matchups for Elis SA
Pair Trading with NYSE Composite and Elis SA
The main advantage of trading using opposite NYSE Composite and Elis SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Elis SA 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 Elis SA will offset losses from the drop in Elis SA's long position.| NYSE Composite vs. Acumen Pharmaceuticals | NYSE Composite vs. Mind Medicine | NYSE Composite vs. NL Industries | NYSE Composite vs. Ecovyst |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Positions Ratings 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 | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |