Correlation Between NYSE Composite and Regents Park
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Regents Park 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 Regents Park into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Regents Park Hedged, you can compare the effects of market volatilities on NYSE Composite and Regents Park 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 Regents Park. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Regents Park.
Diversification Opportunities for NYSE Composite and Regents Park
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between NYSE and Regents is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Regents Park Hedged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regents Park Hedged 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 Regents Park. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regents Park Hedged has no effect on the direction of NYSE Composite i.e., NYSE Composite and Regents Park go up and down completely randomly.
Pair Corralation between NYSE Composite and Regents Park
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.87 times more return on investment than Regents Park. However, NYSE Composite is 1.15 times less risky than Regents Park. It trades about 0.14 of its potential returns per unit of risk. Regents Park Hedged is currently generating about 0.11 per unit of risk. If you would invest 1,800,696 in NYSE Composite on September 1, 2024 and sell it today you would earn a total of 226,508 from holding NYSE Composite or generate 12.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
NYSE Composite vs. Regents Park Hedged
Performance |
| Timeline |
NYSE Composite and Regents Park Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Regents Park Hedged
Pair trading matchups for Regents Park
Pair Trading with NYSE Composite and Regents Park
The main advantage of trading using opposite NYSE Composite and Regents Park positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Regents Park 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 Regents Park will offset losses from the drop in Regents Park's long position.| NYSE Composite vs. Acumen Pharmaceuticals | NYSE Composite vs. Mind Medicine | NYSE Composite vs. NL Industries | NYSE Composite vs. Ecovyst |
| Regents Park vs. iShares ESG Aware | Regents Park vs. iShares ESG Aware | Regents Park vs. iShares ESG Aware | Regents Park vs. iShares ESG Advanced |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |