Correlation Between NYSE Composite and Fathom Digital
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Fathom Digital 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 Fathom Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Fathom Digital Manufacturing, you can compare the effects of market volatilities on NYSE Composite and Fathom Digital 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 Fathom Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Fathom Digital.
Diversification Opportunities for NYSE Composite and Fathom Digital
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NYSE and Fathom is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Fathom Digital Manufacturing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fathom Digital Manuf 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 Fathom Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fathom Digital Manuf has no effect on the direction of NYSE Composite i.e., NYSE Composite and Fathom Digital go up and down completely randomly.
Pair Corralation between NYSE Composite and Fathom Digital
If you would invest 1,911,944 in NYSE Composite on October 21, 2024 and sell it today you would earn a total of 48,793 from holding NYSE Composite or generate 2.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
NYSE Composite vs. Fathom Digital Manufacturing
Performance |
| Timeline |
NYSE Composite and Fathom Digital Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Fathom Digital Manufacturing
Pair trading matchups for Fathom Digital
Pair Trading with NYSE Composite and Fathom Digital
The main advantage of trading using opposite NYSE Composite and Fathom Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Fathom Digital 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 Fathom Digital will offset losses from the drop in Fathom Digital's long position.| NYSE Composite vs. National Health Investors | NYSE Composite vs. Arbor Realty Trust | NYSE Composite vs. Canaf Investments | NYSE Composite vs. Freedom Holding Corp |
| Fathom Digital vs. Shapeways Holdings, Common | Fathom Digital vs. Nutriband | Fathom Digital vs. Inspirato | Fathom Digital vs. Anghami De |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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