Correlation Between NYSE Composite and Steward Global
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Steward Global 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 Steward Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Steward Global E, you can compare the effects of market volatilities on NYSE Composite and Steward Global 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 Steward Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Steward Global.
Diversification Opportunities for NYSE Composite and Steward Global
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NYSE and Steward is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Steward Global E in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steward Global E 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 Steward Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steward Global E has no effect on the direction of NYSE Composite i.e., NYSE Composite and Steward Global go up and down completely randomly.
Pair Corralation between NYSE Composite and Steward Global
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.83 times more return on investment than Steward Global. However, NYSE Composite is 1.21 times less risky than Steward Global. It trades about 0.42 of its potential returns per unit of risk. Steward Global E is currently generating about 0.18 per unit of risk. If you would invest 1,923,895 in NYSE Composite on September 1, 2024 and sell it today you would earn a total of 103,309 from holding NYSE Composite or generate 5.37% 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. Steward Global E
Performance |
| Timeline |
NYSE Composite and Steward Global Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Steward Global E
Pair trading matchups for Steward Global
Pair Trading with NYSE Composite and Steward Global
The main advantage of trading using opposite NYSE Composite and Steward Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Steward Global 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 Steward Global will offset losses from the drop in Steward Global's long position.| NYSE Composite vs. Acumen Pharmaceuticals | NYSE Composite vs. Mind Medicine | NYSE Composite vs. NL Industries | NYSE Composite vs. Ecovyst |
| Steward Global vs. Steward Large Cap | Steward Global vs. Steward Small Mid Cap | Steward Global vs. Ave Maria Growth | Steward Global vs. Ave Maria Rising |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |