Correlation Between NYSE Composite and MTN Group
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and MTN Group 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 MTN Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and MTN Group Ltd, you can compare the effects of market volatilities on NYSE Composite and MTN Group 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 MTN Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and MTN Group.
Diversification Opportunities for NYSE Composite and MTN Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NYSE and MTN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and MTN Group Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MTN 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 MTN Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MTN Group has no effect on the direction of NYSE Composite i.e., NYSE Composite and MTN Group go up and down completely randomly.
Pair Corralation between NYSE Composite and MTN Group
Assuming the 90 days trading horizon NYSE Composite is expected to generate 5.32 times less return on investment than MTN Group. But when comparing it to its historical volatility, NYSE Composite is 5.26 times less risky than MTN Group. It trades about 0.32 of its potential returns per unit of risk. MTN Group Ltd is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 488.00 in MTN Group Ltd on November 3, 2024 and sell it today you would earn a total of 129.00 from holding MTN Group Ltd or generate 26.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. MTN Group Ltd
Performance |
| Timeline |
NYSE Composite and MTN Group Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
MTN Group Ltd
Pair trading matchups for MTN Group
Pair Trading with NYSE Composite and MTN Group
The main advantage of trading using opposite NYSE Composite and MTN Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, MTN Group 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 MTN Group will offset losses from the drop in MTN Group's long position.| NYSE Composite vs. Arrow Electronics | NYSE Composite vs. Cirmaker Technology | NYSE Composite vs. Zhihu Inc ADR | NYSE Composite vs. Weibo Corp |
| MTN Group vs. XL Axiata Tbk | MTN Group vs. Telenor ASA ADR | MTN Group vs. KT Corporation | MTN Group vs. Vodacom Group Ltd |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |