Correlation Between NYSE Composite and Grab Holdings
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Grab Holdings 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 Grab Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Grab Holdings, you can compare the effects of market volatilities on NYSE Composite and Grab Holdings 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 Grab Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Grab Holdings.
Diversification Opportunities for NYSE Composite and Grab Holdings
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NYSE and Grab is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Grab Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grab Holdings 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 Grab Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grab Holdings has no effect on the direction of NYSE Composite i.e., NYSE Composite and Grab Holdings go up and down completely randomly.
Pair Corralation between NYSE Composite and Grab Holdings
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.36 times more return on investment than Grab Holdings. However, NYSE Composite is 2.75 times less risky than Grab Holdings. It trades about -0.1 of its potential returns per unit of risk. Grab Holdings is currently generating about -0.06 per unit of risk. If you would invest 2,013,049 in NYSE Composite on January 15, 2025 and sell it today you would lose (170,045) from holding NYSE Composite or give up 8.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Grab Holdings
Performance |
| Timeline |
NYSE Composite and Grab Holdings Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Grab Holdings
Pair trading matchups for Grab Holdings
Pair Trading with NYSE Composite and Grab Holdings
The main advantage of trading using opposite NYSE Composite and Grab Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Grab Holdings 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 Grab Holdings will offset losses from the drop in Grab Holdings' long position.| NYSE Composite vs. Dave Busters Entertainment | NYSE Composite vs. Lizhi Inc | NYSE Composite vs. Unilever PLC ADR | NYSE Composite vs. BCE Inc |
| Grab Holdings vs. LYFT Inc | Grab Holdings vs. Kingsoft Cloud Holdings | Grab Holdings vs. AMTD Digital | Grab Holdings vs. Uber Technologies |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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