Correlation Between NYSE Composite and AllianzIM Equity
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and AllianzIM Equity 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 AllianzIM Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and AllianzIM Equity Buffer15, you can compare the effects of market volatilities on NYSE Composite and AllianzIM Equity 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 AllianzIM Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and AllianzIM Equity.
Diversification Opportunities for NYSE Composite and AllianzIM Equity
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NYSE and AllianzIM is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and AllianzIM Equity Buffer15 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AllianzIM Equity Buffer15 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 AllianzIM Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AllianzIM Equity Buffer15 has no effect on the direction of NYSE Composite i.e., NYSE Composite and AllianzIM Equity go up and down completely randomly.
Pair Corralation between NYSE Composite and AllianzIM Equity
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.66 times less return on investment than AllianzIM Equity. In addition to that, NYSE Composite is 1.06 times more volatile than AllianzIM Equity Buffer15. It trades about 0.08 of its total potential returns per unit of risk. AllianzIM Equity Buffer15 is currently generating about 0.13 per unit of volatility. If you would invest 2,465 in AllianzIM Equity Buffer15 on November 9, 2024 and sell it today you would earn a total of 181.00 from holding AllianzIM Equity Buffer15 or generate 7.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 16.23% |
| Values | Daily Returns |
NYSE Composite vs. AllianzIM Equity Buffer15
Performance |
| Timeline |
NYSE Composite and AllianzIM Equity Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
AllianzIM Equity Buffer15
Pair trading matchups for AllianzIM Equity
Pair Trading with NYSE Composite and AllianzIM Equity
The main advantage of trading using opposite NYSE Composite and AllianzIM Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, AllianzIM Equity 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 AllianzIM Equity will offset losses from the drop in AllianzIM Equity's long position.| NYSE Composite vs. Integrated Media Technology | NYSE Composite vs. Custom Truck One | NYSE Composite vs. Funko Inc | NYSE Composite vs. Multi Ways Holdings |
| AllianzIM Equity vs. FT Vest Equity | AllianzIM Equity vs. Northern Lights | AllianzIM Equity vs. Dimensional International High | AllianzIM Equity vs. First Trust Exchange Traded |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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