Correlation Between NYSE Composite and Sa International
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Sa International 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 International 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 International Small, you can compare the effects of market volatilities on NYSE Composite and Sa International 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 International. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Sa International.
Diversification Opportunities for NYSE Composite and Sa International
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and SAISX is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Sa International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sa International Small 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 International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sa International Small has no effect on the direction of NYSE Composite i.e., NYSE Composite and Sa International go up and down completely randomly.
Pair Corralation between NYSE Composite and Sa International
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.8 times more return on investment than Sa International. However, NYSE Composite is 1.25 times less risky than Sa International. It trades about 0.14 of its potential returns per unit of risk. Sa International Small 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Sa International Small
Performance |
| Timeline |
NYSE Composite and Sa International Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Sa International Small
Pair trading matchups for Sa International
Pair Trading with NYSE Composite and Sa International
The main advantage of trading using opposite NYSE Composite and Sa International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Sa International 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 International will offset losses from the drop in Sa International'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 International vs. Sa International Value | Sa International vs. Sa Value | Sa International vs. Sa Small Company | Sa International vs. Sa Mkt Fd |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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