Correlation Between NYSE Composite and Malacca Straits
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Malacca Straits 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 Malacca Straits into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Malacca Straits Acquisition, you can compare the effects of market volatilities on NYSE Composite and Malacca Straits 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 Malacca Straits. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Malacca Straits.
Diversification Opportunities for NYSE Composite and Malacca Straits
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and Malacca is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Malacca Straits Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malacca Straits Acqu 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 Malacca Straits. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malacca Straits Acqu has no effect on the direction of NYSE Composite i.e., NYSE Composite and Malacca Straits go up and down completely randomly.
Pair Corralation between NYSE Composite and Malacca Straits
Assuming the 90 days trading horizon NYSE Composite is expected to generate 129.8 times less return on investment than Malacca Straits. But when comparing it to its historical volatility, NYSE Composite is 75.38 times less risky than Malacca Straits. It trades about 0.08 of its potential returns per unit of risk. Malacca Straits Acquisition is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 2.00 in Malacca Straits Acquisition on August 26, 2024 and sell it today you would lose (1.86) from holding Malacca Straits Acquisition or give up 93.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 17.51% |
| Values | Daily Returns |
NYSE Composite vs. Malacca Straits Acquisition
Performance |
| Timeline |
NYSE Composite and Malacca Straits Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with NYSE Composite and Malacca Straits
The main advantage of trading using opposite NYSE Composite and Malacca Straits positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Malacca Straits 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 Malacca Straits will offset losses from the drop in Malacca Straits' long position.| NYSE Composite vs. Grocery Outlet Holding | NYSE Composite vs. Tencent Music Entertainment | NYSE Composite vs. SunLink Health Systems | NYSE Composite vs. Getty Realty |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |