Correlation Between NYSE Composite and Generation Asia
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Generation Asia 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 Generation Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Generation Asia I, you can compare the effects of market volatilities on NYSE Composite and Generation Asia 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 Generation Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Generation Asia.
Diversification Opportunities for NYSE Composite and Generation Asia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NYSE and Generation is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Generation Asia I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generation Asia I 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 Generation Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generation Asia I has no effect on the direction of NYSE Composite i.e., NYSE Composite and Generation Asia go up and down completely randomly.
Pair Corralation between NYSE Composite and Generation Asia
If you would invest 1,514,079 in NYSE Composite on November 28, 2024 and sell it today you would earn a total of 478,326 from holding NYSE Composite or generate 31.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
NYSE Composite vs. Generation Asia I
Performance |
| Timeline |
NYSE Composite and Generation Asia Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Generation Asia I
Pair trading matchups for Generation Asia
Pair Trading with NYSE Composite and Generation Asia
The main advantage of trading using opposite NYSE Composite and Generation Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Generation Asia 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 Generation Asia will offset losses from the drop in Generation Asia's long position.| NYSE Composite vs. Inter Parfums | NYSE Composite vs. Amkor Technology | NYSE Composite vs. Unilever PLC ADR | NYSE Composite vs. Estee Lauder Companies |
| Generation Asia vs. Green Planet Bio | Generation Asia vs. Opus Magnum Ameris | Generation Asia vs. Azure Holding Group | Generation Asia vs. Four Leaf Acquisition |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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