Correlation Between NYSE Composite and BingEx
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and BingEx 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 BingEx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and BingEx, you can compare the effects of market volatilities on NYSE Composite and BingEx 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 BingEx. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and BingEx.
Diversification Opportunities for NYSE Composite and BingEx
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NYSE and BingEx is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and BingEx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BingEx 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 BingEx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BingEx has no effect on the direction of NYSE Composite i.e., NYSE Composite and BingEx go up and down completely randomly.
Pair Corralation between NYSE Composite and BingEx
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.11 times more return on investment than BingEx. However, NYSE Composite is 8.9 times less risky than BingEx. It trades about 0.4 of its potential returns per unit of risk. BingEx is currently generating about -0.56 per unit of risk. If you would invest 1,924,339 in NYSE Composite on September 3, 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. BingEx
Performance |
| Timeline |
NYSE Composite and BingEx Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
BingEx
Pair trading matchups for BingEx
Pair Trading with NYSE Composite and BingEx
The main advantage of trading using opposite NYSE Composite and BingEx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, BingEx 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 BingEx will offset losses from the drop in BingEx's long position.| NYSE Composite vs. Lindblad Expeditions Holdings | NYSE Composite vs. LB Foster | NYSE Composite vs. HUTCHMED DRC | NYSE Composite vs. Bridgford Foods |
| BingEx vs. Expeditors International of | BingEx vs. FedEx | BingEx vs. Globavend Holdings Limited | BingEx vs. GXO Logistics |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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