Correlation Between NYSE Composite and Kelly Strategic
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Kelly Strategic 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 Kelly Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Kelly Strategic Management, you can compare the effects of market volatilities on NYSE Composite and Kelly Strategic 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 Kelly Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Kelly Strategic.
Diversification Opportunities for NYSE Composite and Kelly Strategic
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and Kelly is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Kelly Strategic Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kelly Strategic Mana 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 Kelly Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kelly Strategic Mana has no effect on the direction of NYSE Composite i.e., NYSE Composite and Kelly Strategic go up and down completely randomly.
Pair Corralation between NYSE Composite and Kelly Strategic
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.2 times less return on investment than Kelly Strategic. But when comparing it to its historical volatility, NYSE Composite is 1.84 times less risky than Kelly Strategic. It trades about 0.08 of its potential returns per unit of risk. Kelly Strategic Management is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,034 in Kelly Strategic Management on September 3, 2024 and sell it today you would earn a total of 95.00 from holding Kelly Strategic Management or generate 9.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 30.91% |
| Values | Daily Returns |
NYSE Composite vs. Kelly Strategic Management
Performance |
| Timeline |
NYSE Composite and Kelly Strategic Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Kelly Strategic Management
Pair trading matchups for Kelly Strategic
Pair Trading with NYSE Composite and Kelly Strategic
The main advantage of trading using opposite NYSE Composite and Kelly Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Kelly Strategic 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 Kelly Strategic will offset losses from the drop in Kelly Strategic's long position.| NYSE Composite vs. Lindblad Expeditions Holdings | NYSE Composite vs. LB Foster | NYSE Composite vs. HUTCHMED DRC | NYSE Composite vs. Bridgford Foods |
| Kelly Strategic vs. Vanguard Real Estate | Kelly Strategic vs. Howard Hughes | Kelly Strategic vs. The Real Estate | Kelly Strategic vs. Site Centers Corp |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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