Correlation Between NYSE Composite and Kelly Services
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Kelly Services 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 Kelly Services into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Kelly Services A, you can compare the effects of market volatilities on NYSE Composite and Kelly Services 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 Kelly Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Kelly Services.
Diversification Opportunities for NYSE Composite and Kelly Services
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and Kelly is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Kelly Services A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kelly Services A 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 Kelly Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kelly Services A has no effect on the direction of NYSE Composite i.e., NYSE Composite and Kelly Services go up and down completely randomly.
Pair Corralation between NYSE Composite and Kelly Services
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.13 times more return on investment than Kelly Services. However, NYSE Composite is 7.79 times less risky than Kelly Services. It trades about 0.24 of its potential returns per unit of risk. Kelly Services A is currently generating about -0.23 per unit of risk. If you would invest 1,954,967 in NYSE Composite on August 28, 2024 and sell it today you would earn a total of 67,069 from holding NYSE Composite or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Kelly Services A
Performance |
| Timeline |
NYSE Composite and Kelly Services Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Kelly Services A
Pair trading matchups for Kelly Services
Pair Trading with NYSE Composite and Kelly Services
The main advantage of trading using opposite NYSE Composite and Kelly Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Kelly Services 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 Kelly Services will offset losses from the drop in Kelly Services' long position.| NYSE Composite vs. Vita Coco | NYSE Composite vs. Franklin Wireless Corp | NYSE Composite vs. Ambev SA ADR | NYSE Composite vs. Toro Co |
| Kelly Services vs. Korn Ferry | Kelly Services vs. Heidrick Struggles International | Kelly Services vs. Hudson Global | Kelly Services vs. ManpowerGroup |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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