Correlation Between NYSE Composite and Sa Emerging
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Sa Emerging 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 Sa Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Sa Emerging Markets, you can compare the effects of market volatilities on NYSE Composite and Sa Emerging 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 Sa Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Sa Emerging.
Diversification Opportunities for NYSE Composite and Sa Emerging
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between NYSE and SAEMX is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Sa Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sa Emerging Markets 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 Sa Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sa Emerging Markets has no effect on the direction of NYSE Composite i.e., NYSE Composite and Sa Emerging go up and down completely randomly.
Pair Corralation between NYSE Composite and Sa Emerging
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.83 times more return on investment than Sa Emerging. However, NYSE Composite is 1.21 times less risky than Sa Emerging. It trades about 0.14 of its potential returns per unit of risk. Sa Emerging Markets is currently generating about 0.06 per unit of risk. If you would invest 1,620,776 in NYSE Composite on September 3, 2024 and sell it today you would earn a total of 400,546 from holding NYSE Composite or generate 24.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Sa Emerging Markets
Performance |
| Timeline |
NYSE Composite and Sa Emerging Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Sa Emerging Markets
Pair trading matchups for Sa Emerging
Pair Trading with NYSE Composite and Sa Emerging
The main advantage of trading using opposite NYSE Composite and Sa Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Sa Emerging 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 Sa Emerging will offset losses from the drop in Sa Emerging's long position.| NYSE Composite vs. Lindblad Expeditions Holdings | NYSE Composite vs. LB Foster | NYSE Composite vs. HUTCHMED DRC | NYSE Composite vs. Bridgford Foods |
| Sa Emerging vs. Issachar Fund Class | Sa Emerging vs. Growth Strategy Fund | Sa Emerging vs. Vanguard Windsor Fund | Sa Emerging vs. Auer Growth Fund |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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