Correlation Between NYSE Composite and GigCapital5
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and GigCapital5 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 GigCapital5 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and GigCapital5, you can compare the effects of market volatilities on NYSE Composite and GigCapital5 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 GigCapital5. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and GigCapital5.
Diversification Opportunities for NYSE Composite and GigCapital5
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NYSE and GigCapital5 is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and GigCapital5 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigCapital5 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 GigCapital5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GigCapital5 has no effect on the direction of NYSE Composite i.e., NYSE Composite and GigCapital5 go up and down completely randomly.
Pair Corralation between NYSE Composite and GigCapital5
If you would invest 1,923,895 in NYSE Composite on September 1, 2024 and sell it today you would earn a total of 103,309 from holding NYSE Composite or generate 5.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
NYSE Composite vs. GigCapital5
Performance |
| Timeline |
NYSE Composite and GigCapital5 Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
GigCapital5
Pair trading matchups for GigCapital5
Pair Trading with NYSE Composite and GigCapital5
The main advantage of trading using opposite NYSE Composite and GigCapital5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, GigCapital5 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 GigCapital5 will offset losses from the drop in GigCapital5's long position.| NYSE Composite vs. Acumen Pharmaceuticals | NYSE Composite vs. Mind Medicine | NYSE Composite vs. NL Industries | NYSE Composite vs. Ecovyst |
| GigCapital5 vs. MGIC Investment Corp | GigCapital5 vs. WEC Energy Group | GigCapital5 vs. Black Hills | GigCapital5 vs. SEI Investments |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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