Correlation Between NYSE Composite and Flagstar Financial,
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Flagstar Financial, 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 Flagstar Financial, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Flagstar Financial,, you can compare the effects of market volatilities on NYSE Composite and Flagstar Financial, 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 Flagstar Financial,. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Flagstar Financial,.
Diversification Opportunities for NYSE Composite and Flagstar Financial,
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NYSE and Flagstar is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Flagstar Financial, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flagstar Financial, 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 Flagstar Financial,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flagstar Financial, has no effect on the direction of NYSE Composite i.e., NYSE Composite and Flagstar Financial, go up and down completely randomly.
Pair Corralation between NYSE Composite and Flagstar Financial,
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.8 times less return on investment than Flagstar Financial,. But when comparing it to its historical volatility, NYSE Composite is 3.25 times less risky than Flagstar Financial,. It trades about 0.21 of its potential returns per unit of risk. Flagstar Financial, is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 905.00 in Flagstar Financial, on October 21, 2024 and sell it today you would earn a total of 39.00 from holding Flagstar Financial, or generate 4.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Flagstar Financial,
Performance |
| Timeline |
NYSE Composite and Flagstar Financial, Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Flagstar Financial,
Pair trading matchups for Flagstar Financial,
Pair Trading with NYSE Composite and Flagstar Financial,
The main advantage of trading using opposite NYSE Composite and Flagstar Financial, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Flagstar Financial, 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 Flagstar Financial, will offset losses from the drop in Flagstar Financial,'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 |
| Flagstar Financial, vs. CVW CleanTech | Flagstar Financial, vs. CleanGo Innovations | Flagstar Financial, vs. Capital Clean Energy | Flagstar Financial, vs. Siriuspoint |
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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