Correlation Between NYSE Composite and Marks Spencer
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Marks Spencer 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 Marks Spencer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Marks Spencer Group, you can compare the effects of market volatilities on NYSE Composite and Marks Spencer 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 Marks Spencer. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Marks Spencer.
Diversification Opportunities for NYSE Composite and Marks Spencer
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NYSE and Marks is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Marks Spencer Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marks Spencer Group 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 Marks Spencer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marks Spencer Group has no effect on the direction of NYSE Composite i.e., NYSE Composite and Marks Spencer go up and down completely randomly.
Pair Corralation between NYSE Composite and Marks Spencer
Assuming the 90 days trading horizon NYSE Composite is expected to generate 4.09 times less return on investment than Marks Spencer. But when comparing it to its historical volatility, NYSE Composite is 2.61 times less risky than Marks Spencer. It trades about 0.08 of its potential returns per unit of risk. Marks Spencer Group is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 347.00 in Marks Spencer Group on August 31, 2024 and sell it today you would earn a total of 654.00 from holding Marks Spencer Group or generate 188.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Marks Spencer Group
Performance |
| Timeline |
NYSE Composite and Marks Spencer Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Marks Spencer Group
Pair trading matchups for Marks Spencer
Pair Trading with NYSE Composite and Marks Spencer
The main advantage of trading using opposite NYSE Composite and Marks Spencer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Marks Spencer 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 Marks Spencer will offset losses from the drop in Marks Spencer's long position.| NYSE Composite vs. Nextplat Corp | NYSE Composite vs. Qualys Inc | NYSE Composite vs. Cadence Design Systems | NYSE Composite vs. Asure Software |
| Marks Spencer vs. Kohls Corp | Marks Spencer vs. Nordstrom | Marks Spencer vs. Macys Inc | Marks Spencer vs. Dillards |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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