Correlation Between NYSE Composite and Jewett Cameron
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Jewett Cameron 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 Jewett Cameron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Jewett Cameron Trading, you can compare the effects of market volatilities on NYSE Composite and Jewett Cameron 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 Jewett Cameron. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Jewett Cameron.
Diversification Opportunities for NYSE Composite and Jewett Cameron
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and Jewett is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Jewett Cameron Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jewett Cameron Trading 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 Jewett Cameron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jewett Cameron Trading has no effect on the direction of NYSE Composite i.e., NYSE Composite and Jewett Cameron go up and down completely randomly.
Pair Corralation between NYSE Composite and Jewett Cameron
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.29 times more return on investment than Jewett Cameron. However, NYSE Composite is 3.48 times less risky than Jewett Cameron. It trades about 0.15 of its potential returns per unit of risk. Jewett Cameron Trading is currently generating about -0.04 per unit of risk. If you would invest 1,906,443 in NYSE Composite on August 28, 2024 and sell it today you would earn a total of 115,502 from holding NYSE Composite or generate 6.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Jewett Cameron Trading
Performance |
| Timeline |
NYSE Composite and Jewett Cameron Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Jewett Cameron Trading
Pair trading matchups for Jewett Cameron
Pair Trading with NYSE Composite and Jewett Cameron
The main advantage of trading using opposite NYSE Composite and Jewett Cameron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Jewett Cameron 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 Jewett Cameron will offset losses from the drop in Jewett Cameron's long position.| NYSE Composite vs. Vita Coco | NYSE Composite vs. Franklin Wireless Corp | NYSE Composite vs. Ambev SA ADR | NYSE Composite vs. Toro Co |
| Jewett Cameron vs. Steven Madden | Jewett Cameron vs. Eldorado Gold Corp | Jewett Cameron vs. Lincoln Electric Holdings | Jewett Cameron vs. Harmony Gold Mining |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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