Correlation Between NYSE Composite and ReShape Lifesciences
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and ReShape Lifesciences 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 ReShape Lifesciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and ReShape Lifesciences, you can compare the effects of market volatilities on NYSE Composite and ReShape Lifesciences 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 ReShape Lifesciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and ReShape Lifesciences.
Diversification Opportunities for NYSE Composite and ReShape Lifesciences
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NYSE and ReShape is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and ReShape Lifesciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ReShape Lifesciences 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 ReShape Lifesciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ReShape Lifesciences has no effect on the direction of NYSE Composite i.e., NYSE Composite and ReShape Lifesciences go up and down completely randomly.
Pair Corralation between NYSE Composite and ReShape Lifesciences
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.14 times more return on investment than ReShape Lifesciences. However, NYSE Composite is 7.19 times less risky than ReShape Lifesciences. It trades about 0.19 of its potential returns per unit of risk. ReShape Lifesciences is currently generating about 0.0 per unit of risk. If you would invest 1,956,073 in NYSE Composite on August 25, 2024 and sell it today you would earn a total of 56,272 from holding NYSE Composite or generate 2.88% 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. ReShape Lifesciences
Performance |
| Timeline |
NYSE Composite and ReShape Lifesciences Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
ReShape Lifesciences
Pair trading matchups for ReShape Lifesciences
Pair Trading with NYSE Composite and ReShape Lifesciences
The main advantage of trading using opposite NYSE Composite and ReShape Lifesciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, ReShape Lifesciences 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 ReShape Lifesciences will offset losses from the drop in ReShape Lifesciences' long position.| NYSE Composite vs. Awilco Drilling PLC | NYSE Composite vs. AKITA Drilling | NYSE Composite vs. SunOpta | NYSE Composite vs. Delek Drilling |
| ReShape Lifesciences vs. SINTX Technologies | ReShape Lifesciences vs. Bone Biologics Corp | ReShape Lifesciences vs. Tivic Health Systems | ReShape Lifesciences vs. Nuwellis |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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