Correlation Between NYSE Composite and Gemini Group
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Gemini Group 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 Gemini Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Gemini Group Global, you can compare the effects of market volatilities on NYSE Composite and Gemini Group 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 Gemini Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Gemini Group.
Diversification Opportunities for NYSE Composite and Gemini Group
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between NYSE and Gemini is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Gemini Group Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gemini Group Global 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 Gemini Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gemini Group Global has no effect on the direction of NYSE Composite i.e., NYSE Composite and Gemini Group go up and down completely randomly.
Pair Corralation between NYSE Composite and Gemini Group
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.08 times more return on investment than Gemini Group. However, NYSE Composite is 12.5 times less risky than Gemini Group. It trades about 0.08 of its potential returns per unit of risk. Gemini Group Global is currently generating about -0.06 per unit of risk. If you would invest 1,546,867 in NYSE Composite on September 2, 2024 and sell it today you would earn a total of 480,337 from holding NYSE Composite or generate 31.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 8.47% |
| Values | Daily Returns |
NYSE Composite vs. Gemini Group Global
Performance |
| Timeline |
NYSE Composite and Gemini Group Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Gemini Group Global
Pair trading matchups for Gemini Group
Pair Trading with NYSE Composite and Gemini Group
The main advantage of trading using opposite NYSE Composite and Gemini Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Gemini Group 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 Gemini Group will offset losses from the drop in Gemini Group's long position.| NYSE Composite vs. Simon Property Group | NYSE Composite vs. Merit Medical Systems | NYSE Composite vs. Catalent | NYSE Composite vs. Titan Machinery |
| Gemini Group vs. Huaizhong Health Group | Gemini Group vs. Trimax Corp | Gemini Group vs. Church Crawford | Gemini Group vs. Greenlite Ventures |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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