Correlation Between NYSE Composite and UHF Logistics
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and UHF Logistics 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 UHF Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and UHF Logistics Group, you can compare the effects of market volatilities on NYSE Composite and UHF Logistics 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 UHF Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and UHF Logistics.
Diversification Opportunities for NYSE Composite and UHF Logistics
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and UHF is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and UHF Logistics Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UHF Logistics 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 UHF Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UHF Logistics Group has no effect on the direction of NYSE Composite i.e., NYSE Composite and UHF Logistics go up and down completely randomly.
Pair Corralation between NYSE Composite and UHF Logistics
Assuming the 90 days trading horizon NYSE Composite is expected to generate 19.64 times less return on investment than UHF Logistics. But when comparing it to its historical volatility, NYSE Composite is 69.93 times less risky than UHF Logistics. It trades about 0.41 of its potential returns per unit of risk. UHF Logistics Group is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 4.50 in UHF Logistics Group on September 2, 2024 and sell it today you would lose (1.30) from holding UHF Logistics Group or give up 28.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. UHF Logistics Group
Performance |
| Timeline |
NYSE Composite and UHF Logistics Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
UHF Logistics Group
Pair trading matchups for UHF Logistics
Pair Trading with NYSE Composite and UHF Logistics
The main advantage of trading using opposite NYSE Composite and UHF Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, UHF Logistics 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 UHF Logistics will offset losses from the drop in UHF Logistics' long position.| NYSE Composite vs. Simon Property Group | NYSE Composite vs. Merit Medical Systems | NYSE Composite vs. Catalent | NYSE Composite vs. Titan Machinery |
| UHF Logistics vs. American Leisure Holdings | UHF Logistics vs. Supurva Healthcare Group | UHF Logistics vs. China Health Management | UHF Logistics vs. Embrace Change Acquisition |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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