Correlation Between NYSE Composite and Helios Technologies
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Helios Technologies 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 Helios Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Helios Technologies, you can compare the effects of market volatilities on NYSE Composite and Helios Technologies 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 Helios Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Helios Technologies.
Diversification Opportunities for NYSE Composite and Helios Technologies
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NYSE and Helios is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Helios Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helios Technologies 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 Helios Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helios Technologies has no effect on the direction of NYSE Composite i.e., NYSE Composite and Helios Technologies go up and down completely randomly.
Pair Corralation between NYSE Composite and Helios Technologies
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.13 times less return on investment than Helios Technologies. But when comparing it to its historical volatility, NYSE Composite is 3.88 times less risky than Helios Technologies. It trades about 0.12 of its potential returns per unit of risk. Helios Technologies is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 4,857 in Helios Technologies on August 24, 2024 and sell it today you would earn a total of 374.00 from holding Helios Technologies or generate 7.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Helios Technologies
Performance |
| Timeline |
NYSE Composite and Helios Technologies Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Helios Technologies
Pair trading matchups for Helios Technologies
Pair Trading with NYSE Composite and Helios Technologies
The main advantage of trading using opposite NYSE Composite and Helios Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Helios Technologies 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 Helios Technologies will offset losses from the drop in Helios Technologies' long position.| NYSE Composite vs. Akanda Corp | NYSE Composite vs. Valneva SE ADR | NYSE Composite vs. Radcom | NYSE Composite vs. Western Digital |
| Helios Technologies vs. Illinois Tool Works | Helios Technologies vs. Pentair PLC | Helios Technologies vs. Emerson Electric | Helios Technologies vs. Smith AO |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |