Correlation Between NYSE Composite and Equitable Holdings
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Equitable Holdings 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 Equitable Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Equitable Holdings, you can compare the effects of market volatilities on NYSE Composite and Equitable Holdings 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 Equitable Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Equitable Holdings.
Diversification Opportunities for NYSE Composite and Equitable Holdings
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and Equitable is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Equitable Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equitable Holdings 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 Equitable Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equitable Holdings has no effect on the direction of NYSE Composite i.e., NYSE Composite and Equitable Holdings go up and down completely randomly.
Pair Corralation between NYSE Composite and Equitable Holdings
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.77 times more return on investment than Equitable Holdings. However, NYSE Composite is 1.3 times less risky than Equitable Holdings. It trades about 0.14 of its potential returns per unit of risk. Equitable Holdings is currently generating about 0.07 per unit of risk. If you would invest 1,592,915 in NYSE Composite on August 24, 2024 and sell it today you would earn a total of 403,915 from holding NYSE Composite or generate 25.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Equitable Holdings
Performance |
| Timeline |
NYSE Composite and Equitable Holdings Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Equitable Holdings
Pair trading matchups for Equitable Holdings
Pair Trading with NYSE Composite and Equitable Holdings
The main advantage of trading using opposite NYSE Composite and Equitable Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Equitable Holdings 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 Equitable Holdings will offset losses from the drop in Equitable Holdings' long position.| NYSE Composite vs. Awilco Drilling PLC | NYSE Composite vs. AKITA Drilling | NYSE Composite vs. SunOpta | NYSE Composite vs. Delek Drilling |
| Equitable Holdings vs. Capital One Financial | Equitable Holdings vs. Citizens Financial Group | Equitable Holdings vs. Equitable Holdings | Equitable Holdings vs. MetLife Preferred Stock |
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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