Correlation Between NYSE Composite and B Riley
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and B Riley 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 B Riley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and B Riley Financial, you can compare the effects of market volatilities on NYSE Composite and B Riley 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 B Riley. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and B Riley.
Diversification Opportunities for NYSE Composite and B Riley
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and RILYG is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and B Riley Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on B Riley Financial 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 B Riley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of B Riley Financial has no effect on the direction of NYSE Composite i.e., NYSE Composite and B Riley go up and down completely randomly.
Pair Corralation between NYSE Composite and B Riley
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.19 times more return on investment than B Riley. However, NYSE Composite is 5.14 times less risky than B Riley. It trades about 0.08 of its potential returns per unit of risk. B Riley Financial is currently generating about 0.0 per unit of risk. If you would invest 1,547,479 in NYSE Composite on August 26, 2024 and sell it today you would earn a total of 464,866 from holding NYSE Composite or generate 30.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. B Riley Financial
Performance |
| Timeline |
NYSE Composite and B Riley Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
B Riley Financial
Pair trading matchups for B Riley
Pair Trading with NYSE Composite and B Riley
The main advantage of trading using opposite NYSE Composite and B Riley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, B Riley 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 B Riley will offset losses from the drop in B Riley's long position.| NYSE Composite vs. Grocery Outlet Holding | NYSE Composite vs. Tencent Music Entertainment | NYSE Composite vs. SunLink Health Systems | NYSE Composite vs. Getty Realty |
| B Riley vs. B Riley Financial | B Riley vs. B Riley Financial | B Riley vs. B Riley Financial, | B Riley vs. B Riley Financial |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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