Correlation Between NYSE Composite and FLFR
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and FLFR 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 FLFR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and FLFR, you can compare the effects of market volatilities on NYSE Composite and FLFR 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 FLFR. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and FLFR.
Diversification Opportunities for NYSE Composite and FLFR
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and FLFR is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and FLFR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLFR 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 FLFR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLFR has no effect on the direction of NYSE Composite i.e., NYSE Composite and FLFR go up and down completely randomly.
Pair Corralation between NYSE Composite and FLFR
If you would invest 1,924,339 in NYSE Composite on September 4, 2024 and sell it today you would earn a total of 96,983 from holding NYSE Composite or generate 5.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
NYSE Composite vs. FLFR
Performance |
| Timeline |
NYSE Composite and FLFR Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
FLFR
Pair trading matchups for FLFR
Pair Trading with NYSE Composite and FLFR
The main advantage of trading using opposite NYSE Composite and FLFR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, FLFR 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 FLFR will offset losses from the drop in FLFR's long position.| NYSE Composite vs. Kite Realty Group | NYSE Composite vs. Tradeweb Markets | NYSE Composite vs. Meiwu Technology Co | NYSE Composite vs. Uber Technologies |
| FLFR vs. Franklin FTSE Germany | FLFR vs. Franklin FTSE United | FLFR vs. Franklin FTSE Mexico | FLFR vs. Franklin FTSE Australia |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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