Correlation Between NYSE Composite and Siit Multi
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Siit Multi 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 Siit Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Siit Multi Asset Real, you can compare the effects of market volatilities on NYSE Composite and Siit Multi 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 Siit Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Siit Multi.
Diversification Opportunities for NYSE Composite and Siit Multi
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and Siit is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Siit Multi Asset Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Multi Asset 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 Siit Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Multi Asset has no effect on the direction of NYSE Composite i.e., NYSE Composite and Siit Multi go up and down completely randomly.
Pair Corralation between NYSE Composite and Siit Multi
Assuming the 90 days trading horizon NYSE Composite is expected to generate 2.1 times more return on investment than Siit Multi. However, NYSE Composite is 2.1 times more volatile than Siit Multi Asset Real. It trades about 0.12 of its potential returns per unit of risk. Siit Multi Asset Real is currently generating about 0.0 per unit of risk. If you would invest 1,912,150 in NYSE Composite on September 13, 2024 and sell it today you would earn a total of 76,953 from holding NYSE Composite or generate 4.02% 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. Siit Multi Asset Real
Performance |
| Timeline |
NYSE Composite and Siit Multi Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Siit Multi Asset Real
Pair trading matchups for Siit Multi
Pair Trading with NYSE Composite and Siit Multi
The main advantage of trading using opposite NYSE Composite and Siit Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Siit Multi 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 Siit Multi will offset losses from the drop in Siit Multi's long position.| NYSE Composite vs. Boston Beer | NYSE Composite vs. Freedom Bank of | NYSE Composite vs. KeyCorp | NYSE Composite vs. LithiumBank Resources Corp |
| Siit Multi vs. Vanguard Inflation Protected Securities | Siit Multi vs. Vanguard Inflation Protected Securities | Siit Multi vs. American Funds Inflation | Siit Multi vs. American Funds Inflation |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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