Correlation Between NYSE Composite and Hong Kong
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Hong Kong 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 Hong Kong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Hong Kong And, you can compare the effects of market volatilities on NYSE Composite and Hong Kong 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 Hong Kong. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Hong Kong.
Diversification Opportunities for NYSE Composite and Hong Kong
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NYSE and Hong is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Hong Kong And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hong Kong And 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 Hong Kong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hong Kong And has no effect on the direction of NYSE Composite i.e., NYSE Composite and Hong Kong go up and down completely randomly.
Pair Corralation between NYSE Composite and Hong Kong
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 Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
NYSE Composite vs. Hong Kong And
Performance |
| Timeline |
NYSE Composite and Hong Kong Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Hong Kong And
Pair trading matchups for Hong Kong
Pair Trading with NYSE Composite and Hong Kong
The main advantage of trading using opposite NYSE Composite and Hong Kong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Hong Kong 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 Hong Kong will offset losses from the drop in Hong Kong's long position.| NYSE Composite vs. Acumen Pharmaceuticals | NYSE Composite vs. Mind Medicine | NYSE Composite vs. NL Industries | NYSE Composite vs. Ecovyst |
| Hong Kong vs. Hong Kong and | Hong Kong vs. China Life Insurance | Hong Kong vs. Henderson Land Development | Hong Kong vs. Fortum Oyj ADR |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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