Correlation Between NYSE Composite and Myomo
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Myomo 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 Myomo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Myomo Inc, you can compare the effects of market volatilities on NYSE Composite and Myomo 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 Myomo. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Myomo.
Diversification Opportunities for NYSE Composite and Myomo
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and Myomo is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Myomo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Myomo Inc 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 Myomo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Myomo Inc has no effect on the direction of NYSE Composite i.e., NYSE Composite and Myomo go up and down completely randomly.
Pair Corralation between NYSE Composite and Myomo
Assuming the 90 days trading horizon NYSE Composite is expected to generate 11.67 times less return on investment than Myomo. But when comparing it to its historical volatility, NYSE Composite is 8.79 times less risky than Myomo. It trades about 0.08 of its potential returns per unit of risk. Myomo Inc is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 55.00 in Myomo Inc on September 2, 2024 and sell it today you would earn a total of 507.00 from holding Myomo Inc or generate 921.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Myomo Inc
Performance |
| Timeline |
NYSE Composite and Myomo Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Myomo Inc
Pair trading matchups for Myomo
Pair Trading with NYSE Composite and Myomo
The main advantage of trading using opposite NYSE Composite and Myomo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Myomo 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 Myomo will offset losses from the drop in Myomo's long position.| NYSE Composite vs. Simon Property Group | NYSE Composite vs. Merit Medical Systems | NYSE Composite vs. Catalent | NYSE Composite vs. Titan Machinery |
| Myomo vs. SINTX Technologies | Myomo vs. ReShape Lifesciences | Myomo vs. Bone Biologics Corp | Myomo vs. Tivic Health Systems |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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