Correlation Between NYSE Composite and IQ Candriam
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and IQ Candriam 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 IQ Candriam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and IQ Candriam ESG, you can compare the effects of market volatilities on NYSE Composite and IQ Candriam 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 IQ Candriam. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and IQ Candriam.
Diversification Opportunities for NYSE Composite and IQ Candriam
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between NYSE and IQSU is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and IQ Candriam ESG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IQ Candriam ESG 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 IQ Candriam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IQ Candriam ESG has no effect on the direction of NYSE Composite i.e., NYSE Composite and IQ Candriam go up and down completely randomly.
Pair Corralation between NYSE Composite and IQ Candriam
Assuming the 90 days trading horizon NYSE Composite is expected to under-perform the IQ Candriam. But the index apears to be less risky and, when comparing its historical volatility, NYSE Composite is 1.12 times less risky than IQ Candriam. The index trades about -0.07 of its potential returns per unit of risk. The IQ Candriam ESG is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 4,963 in IQ Candriam ESG on September 12, 2024 and sell it today you would earn a total of 107.00 from holding IQ Candriam ESG or generate 2.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
NYSE Composite vs. IQ Candriam ESG
Performance |
| Timeline |
NYSE Composite and IQ Candriam Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
IQ Candriam ESG
Pair trading matchups for IQ Candriam
Pair Trading with NYSE Composite and IQ Candriam
The main advantage of trading using opposite NYSE Composite and IQ Candriam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, IQ Candriam 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 IQ Candriam will offset losses from the drop in IQ Candriam's long position.| NYSE Composite vs. Teleflex Incorporated | NYSE Composite vs. Victorias Secret Co | NYSE Composite vs. Under Armour C | NYSE Composite vs. Steven Madden |
| IQ Candriam vs. IQ Candriam ESG | IQ Candriam vs. Xtrackers MSCI USA | IQ Candriam vs. Xtrackers SP 500 | IQ Candriam vs. Nuveen ESG Large Cap |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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