Correlation Between NYSE Composite and GN Store
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and GN Store 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 GN Store into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and GN Store Nord, you can compare the effects of market volatilities on NYSE Composite and GN Store 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 GN Store. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and GN Store.
Diversification Opportunities for NYSE Composite and GN Store
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NYSE and GGNDF is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and GN Store Nord in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GN Store Nord 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 GN Store. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GN Store Nord has no effect on the direction of NYSE Composite i.e., NYSE Composite and GN Store go up and down completely randomly.
Pair Corralation between NYSE Composite and GN Store
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.19 times more return on investment than GN Store. However, NYSE Composite is 5.35 times less risky than GN Store. It trades about 0.1 of its potential returns per unit of risk. GN Store Nord is currently generating about -0.01 per unit of risk. If you would invest 1,617,454 in NYSE Composite on August 26, 2024 and sell it today you would earn a total of 394,891 from holding NYSE Composite or generate 24.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. GN Store Nord
Performance |
| Timeline |
NYSE Composite and GN Store Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
GN Store Nord
Pair trading matchups for GN Store
Pair Trading with NYSE Composite and GN Store
The main advantage of trading using opposite NYSE Composite and GN Store positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, GN Store 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 GN Store will offset losses from the drop in GN Store's long position.| NYSE Composite vs. Glacier Bancorp | NYSE Composite vs. LithiumBank Resources Corp | NYSE Composite vs. Stepstone Group | NYSE Composite vs. Pintec Technology Holdings |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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