Correlation Between NYSE Composite and Investcorp Credit
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Investcorp Credit 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 Investcorp Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Investcorp Credit Management, you can compare the effects of market volatilities on NYSE Composite and Investcorp Credit 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 Investcorp Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Investcorp Credit.
Diversification Opportunities for NYSE Composite and Investcorp Credit
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NYSE and Investcorp is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Investcorp Credit Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investcorp Credit 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 Investcorp Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investcorp Credit has no effect on the direction of NYSE Composite i.e., NYSE Composite and Investcorp Credit go up and down completely randomly.
Pair Corralation between NYSE Composite and Investcorp Credit
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.34 times more return on investment than Investcorp Credit. However, NYSE Composite is 2.91 times less risky than Investcorp Credit. It trades about 0.11 of its potential returns per unit of risk. Investcorp Credit Management is currently generating about 0.02 per unit of risk. If you would invest 1,550,264 in NYSE Composite on August 31, 2024 and sell it today you would earn a total of 476,940 from holding NYSE Composite or generate 30.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Investcorp Credit Management
Performance |
| Timeline |
NYSE Composite and Investcorp Credit Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Investcorp Credit Management
Pair trading matchups for Investcorp Credit
Pair Trading with NYSE Composite and Investcorp Credit
The main advantage of trading using opposite NYSE Composite and Investcorp Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Investcorp Credit 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 Investcorp Credit will offset losses from the drop in Investcorp Credit's long position.| NYSE Composite vs. Nextplat Corp | NYSE Composite vs. Qualys Inc | NYSE Composite vs. Cadence Design Systems | NYSE Composite vs. Asure Software |
| Investcorp Credit vs. Presidio Property Trust | Investcorp Credit vs. Great Elm Capital | Investcorp Credit vs. Portman Ridge Finance | Investcorp Credit vs. OFS Capital Corp |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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