Correlation Between NYSE Composite and Longeveron LLC
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Longeveron LLC 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 Longeveron LLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Longeveron LLC, you can compare the effects of market volatilities on NYSE Composite and Longeveron LLC 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 Longeveron LLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Longeveron LLC.
Diversification Opportunities for NYSE Composite and Longeveron LLC
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and Longeveron is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Longeveron LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longeveron LLC 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 Longeveron LLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longeveron LLC has no effect on the direction of NYSE Composite i.e., NYSE Composite and Longeveron LLC go up and down completely randomly.
Pair Corralation between NYSE Composite and Longeveron LLC
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.18 times more return on investment than Longeveron LLC. However, NYSE Composite is 5.53 times less risky than Longeveron LLC. It trades about 0.24 of its potential returns per unit of risk. Longeveron LLC is currently generating about -0.12 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 | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
NYSE Composite vs. Longeveron LLC
Performance |
| Timeline |
NYSE Composite and Longeveron LLC Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Longeveron LLC
Pair trading matchups for Longeveron LLC
Pair Trading with NYSE Composite and Longeveron LLC
The main advantage of trading using opposite NYSE Composite and Longeveron LLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Longeveron LLC 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 Longeveron LLC will offset losses from the drop in Longeveron LLC'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 |
| Longeveron LLC vs. Nutriband | Longeveron LLC vs. Quoin Pharmaceuticals Ltd | Longeveron LLC vs. RenovoRx | Longeveron LLC vs. Virax Biolabs Group |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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