Correlation Between NYSE Composite and Lineage Cell
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Lineage Cell 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 Lineage Cell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Lineage Cell Therapeutics, you can compare the effects of market volatilities on NYSE Composite and Lineage Cell 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 Lineage Cell. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Lineage Cell.
Diversification Opportunities for NYSE Composite and Lineage Cell
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and Lineage is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Lineage Cell Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lineage Cell Therapeutics 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 Lineage Cell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lineage Cell Therapeutics has no effect on the direction of NYSE Composite i.e., NYSE Composite and Lineage Cell go up and down completely randomly.
Pair Corralation between NYSE Composite and Lineage Cell
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.09 times more return on investment than Lineage Cell. However, NYSE Composite is 10.94 times less risky than Lineage Cell. It trades about 0.14 of its potential returns per unit of risk. Lineage Cell Therapeutics is currently generating about -0.11 per unit of risk. If you would invest 1,950,122 in NYSE Composite on August 28, 2024 and sell it today you would earn a total of 71,823 from holding NYSE Composite or generate 3.68% 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. Lineage Cell Therapeutics
Performance |
| Timeline |
NYSE Composite and Lineage Cell Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Lineage Cell Therapeutics
Pair trading matchups for Lineage Cell
Pair Trading with NYSE Composite and Lineage Cell
The main advantage of trading using opposite NYSE Composite and Lineage Cell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Lineage Cell 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 Lineage Cell will offset losses from the drop in Lineage Cell'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 |
| Lineage Cell vs. MAIA Biotechnology | Lineage Cell vs. Armata Pharmaceuticals | Lineage Cell vs. Portage Biotech | Lineage Cell vs. Cadrenal Therapeutics, Common |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| CEOs Directory Screen CEOs from public companies around the world |