Correlation Between NYSE Composite and Shenkman Short
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Shenkman Short 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 Shenkman Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Shenkman Short Duration, you can compare the effects of market volatilities on NYSE Composite and Shenkman Short 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 Shenkman Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Shenkman Short.
Diversification Opportunities for NYSE Composite and Shenkman Short
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NYSE and Shenkman is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Shenkman Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenkman Short Duration 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 Shenkman Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenkman Short Duration has no effect on the direction of NYSE Composite i.e., NYSE Composite and Shenkman Short go up and down completely randomly.
Pair Corralation between NYSE Composite and Shenkman Short
Assuming the 90 days trading horizon NYSE Composite is expected to generate 4.89 times more return on investment than Shenkman Short. However, NYSE Composite is 4.89 times more volatile than Shenkman Short Duration. It trades about 0.36 of its potential returns per unit of risk. Shenkman Short Duration is currently generating about 0.08 per unit of risk. If you would invest 1,924,339 in NYSE Composite on September 5, 2024 and sell it today you would earn a total of 94,521 from holding NYSE Composite or generate 4.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
NYSE Composite vs. Shenkman Short Duration
Performance |
| Timeline |
NYSE Composite and Shenkman Short Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Shenkman Short Duration
Pair trading matchups for Shenkman Short
Pair Trading with NYSE Composite and Shenkman Short
The main advantage of trading using opposite NYSE Composite and Shenkman Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Shenkman Short 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 Shenkman Short will offset losses from the drop in Shenkman Short's long position.| NYSE Composite vs. Air Products and | NYSE Composite vs. Playtika Holding Corp | NYSE Composite vs. PepsiCo | NYSE Composite vs. NETGEAR |
| Shenkman Short vs. Angel Oak Financial | Shenkman Short vs. Prudential Jennison Financial | Shenkman Short vs. Icon Financial Fund | Shenkman Short vs. Davis Financial 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |