Correlation Between NYSE Composite and IAnthus Capital
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and IAnthus Capital 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 IAnthus Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and iAnthus Capital Holdings, you can compare the effects of market volatilities on NYSE Composite and IAnthus Capital 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 IAnthus Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and IAnthus Capital.
Diversification Opportunities for NYSE Composite and IAnthus Capital
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NYSE and IAnthus is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and iAnthus Capital Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iAnthus Capital 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 IAnthus Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iAnthus Capital Holdings has no effect on the direction of NYSE Composite i.e., NYSE Composite and IAnthus Capital go up and down completely randomly.
Pair Corralation between NYSE Composite and IAnthus Capital
Assuming the 90 days trading horizon NYSE Composite is expected to generate 18.61 times less return on investment than IAnthus Capital. But when comparing it to its historical volatility, NYSE Composite is 24.45 times less risky than IAnthus Capital. It trades about 0.19 of its potential returns per unit of risk. iAnthus Capital Holdings is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 0.40 in iAnthus Capital Holdings on November 30, 2024 and sell it today you would earn a total of 0.23 from holding iAnthus Capital Holdings or generate 57.5% 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. iAnthus Capital Holdings
Performance |
| Timeline |
NYSE Composite and IAnthus Capital Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
iAnthus Capital Holdings
Pair trading matchups for IAnthus Capital
Pair Trading with NYSE Composite and IAnthus Capital
The main advantage of trading using opposite NYSE Composite and IAnthus Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, IAnthus Capital 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 IAnthus Capital will offset losses from the drop in IAnthus Capital's long position.| NYSE Composite vs. Intuitive Surgical | NYSE Composite vs. Franklin Wireless Corp | NYSE Composite vs. Idaho Strategic Resources | NYSE Composite vs. Femasys |
| IAnthus Capital vs. Orchid Ventures | IAnthus Capital vs. TransCanna Holdings | IAnthus Capital vs. BioQuest Corp | IAnthus Capital vs. Verano Holdings 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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