Correlation Between NYSE Composite and Lkcm Fixed
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Lkcm Fixed 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 Lkcm Fixed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Lkcm Fixed Income, you can compare the effects of market volatilities on NYSE Composite and Lkcm Fixed 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 Lkcm Fixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Lkcm Fixed.
Diversification Opportunities for NYSE Composite and Lkcm Fixed
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and Lkcm is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Lkcm Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lkcm Fixed Income 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 Lkcm Fixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lkcm Fixed Income has no effect on the direction of NYSE Composite i.e., NYSE Composite and Lkcm Fixed go up and down completely randomly.
Pair Corralation between NYSE Composite and Lkcm Fixed
Assuming the 90 days trading horizon NYSE Composite is expected to generate 3.22 times more return on investment than Lkcm Fixed. However, NYSE Composite is 3.22 times more volatile than Lkcm Fixed Income. It trades about 0.42 of its potential returns per unit of risk. Lkcm Fixed Income is currently generating about 0.16 per unit of risk. If you would invest 1,923,895 in NYSE Composite on September 1, 2024 and sell it today you would earn a total of 103,309 from holding NYSE Composite or generate 5.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
NYSE Composite vs. Lkcm Fixed Income
Performance |
| Timeline |
NYSE Composite and Lkcm Fixed Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Lkcm Fixed Income
Pair trading matchups for Lkcm Fixed
Pair Trading with NYSE Composite and Lkcm Fixed
The main advantage of trading using opposite NYSE Composite and Lkcm Fixed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Lkcm Fixed 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 Lkcm Fixed will offset losses from the drop in Lkcm Fixed's long position.| NYSE Composite vs. Acumen Pharmaceuticals | NYSE Composite vs. Mind Medicine | NYSE Composite vs. NL Industries | NYSE Composite vs. Ecovyst |
| Lkcm Fixed vs. Calamos Dynamic Convertible | Lkcm Fixed vs. Columbia Vertible Securities | Lkcm Fixed vs. Rationalpier 88 Convertible | Lkcm Fixed vs. Gabelli Convertible And |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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