Correlation Between NYSE Composite and Kopernik Global
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Kopernik Global 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 Kopernik Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Kopernik Global All Cap, you can compare the effects of market volatilities on NYSE Composite and Kopernik Global 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 Kopernik Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Kopernik Global.
Diversification Opportunities for NYSE Composite and Kopernik Global
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NYSE and Kopernik is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Kopernik Global All Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kopernik Global All 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 Kopernik Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kopernik Global All has no effect on the direction of NYSE Composite i.e., NYSE Composite and Kopernik Global go up and down completely randomly.
Pair Corralation between NYSE Composite and Kopernik Global
Assuming the 90 days trading horizon NYSE Composite is expected to under-perform the Kopernik Global. But the index apears to be less risky and, when comparing its historical volatility, NYSE Composite is 1.1 times less risky than Kopernik Global. The index trades about -0.02 of its potential returns per unit of risk. The Kopernik Global All Cap is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 1,130 in Kopernik Global All Cap on November 28, 2024 and sell it today you would earn a total of 48.00 from holding Kopernik Global All Cap or generate 4.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Kopernik Global All Cap
Performance |
| Timeline |
NYSE Composite and Kopernik Global Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Kopernik Global All Cap
Pair trading matchups for Kopernik Global
Pair Trading with NYSE Composite and Kopernik Global
The main advantage of trading using opposite NYSE Composite and Kopernik Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Kopernik Global 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 Kopernik Global will offset losses from the drop in Kopernik Global's long position.| NYSE Composite vs. Inter Parfums | NYSE Composite vs. Amkor Technology | NYSE Composite vs. Unilever PLC ADR | NYSE Composite vs. Estee Lauder Companies |
| Kopernik Global vs. Tax Managed International Equity | Kopernik Global vs. Nationwide E Plus | Kopernik Global vs. Rationalrgn Hedged Equity | Kopernik Global vs. T Rowe Price |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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