Correlation Between NYSE Composite and Pinstripes Holdings
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Pinstripes Holdings 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 Pinstripes Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Pinstripes Holdings, you can compare the effects of market volatilities on NYSE Composite and Pinstripes Holdings 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 Pinstripes Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Pinstripes Holdings.
Diversification Opportunities for NYSE Composite and Pinstripes Holdings
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and Pinstripes is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Pinstripes Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinstripes Holdings 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 Pinstripes Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinstripes Holdings has no effect on the direction of NYSE Composite i.e., NYSE Composite and Pinstripes Holdings go up and down completely randomly.
Pair Corralation between NYSE Composite and Pinstripes Holdings
Assuming the 90 days trading horizon NYSE Composite is expected to generate 2.21 times less return on investment than Pinstripes Holdings. But when comparing it to its historical volatility, NYSE Composite is 9.87 times less risky than Pinstripes Holdings. It trades about 0.24 of its potential returns per unit of risk. Pinstripes Holdings is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 95.00 in Pinstripes Holdings on August 28, 2024 and sell it today you would earn a total of 3.00 from holding Pinstripes Holdings or generate 3.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Pinstripes Holdings
Performance |
| Timeline |
NYSE Composite and Pinstripes Holdings Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Pinstripes Holdings
Pair trading matchups for Pinstripes Holdings
Pair Trading with NYSE Composite and Pinstripes Holdings
The main advantage of trading using opposite NYSE Composite and Pinstripes Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Pinstripes Holdings 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 Pinstripes Holdings will offset losses from the drop in Pinstripes Holdings' long position.| NYSE Composite vs. Hooker Furniture | NYSE Composite vs. Hudson Pacific Properties | NYSE Composite vs. Canlan Ice Sports | NYSE Composite vs. Boston Properties |
| Pinstripes Holdings vs. MGIC Investment Corp | Pinstripes Holdings vs. Highway Holdings Limited | Pinstripes Holdings vs. Flexible Solutions International | Pinstripes Holdings vs. Summit Materials |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |