Correlation Between NYSE Composite and Mars Acquisition
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Mars Acquisition 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 Mars Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Mars Acquisition Corp, you can compare the effects of market volatilities on NYSE Composite and Mars Acquisition 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 Mars Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Mars Acquisition.
Diversification Opportunities for NYSE Composite and Mars Acquisition
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NYSE and Mars is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Mars Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mars Acquisition Corp 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 Mars Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mars Acquisition Corp has no effect on the direction of NYSE Composite i.e., NYSE Composite and Mars Acquisition go up and down completely randomly.
Pair Corralation between NYSE Composite and Mars Acquisition
Assuming the 90 days trading horizon NYSE Composite is expected to generate 8.13 times less return on investment than Mars Acquisition. But when comparing it to its historical volatility, NYSE Composite is 15.94 times less risky than Mars Acquisition. It trades about 0.14 of its potential returns per unit of risk. Mars Acquisition Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 23.00 in Mars Acquisition Corp on September 4, 2024 and sell it today you would earn a total of 5.00 from holding Mars Acquisition Corp or generate 21.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 44.13% |
| Values | Daily Returns |
NYSE Composite vs. Mars Acquisition Corp
Performance |
| Timeline |
NYSE Composite and Mars Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Mars Acquisition Corp
Pair trading matchups for Mars Acquisition
Pair Trading with NYSE Composite and Mars Acquisition
The main advantage of trading using opposite NYSE Composite and Mars Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Mars Acquisition 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 Mars Acquisition will offset losses from the drop in Mars Acquisition's long position.| NYSE Composite vs. Kite Realty Group | NYSE Composite vs. Tradeweb Markets | NYSE Composite vs. Meiwu Technology Co | NYSE Composite vs. Uber Technologies |
| Mars Acquisition vs. Merit Medical Systems | Mars Acquisition vs. Assurant | Mars Acquisition vs. Skechers USA | Mars Acquisition vs. Virco Manufacturing |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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