Correlation Between NYSE Composite and Saat Market
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Saat Market 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 Saat Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Saat Market Growth, you can compare the effects of market volatilities on NYSE Composite and Saat Market 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 Saat Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Saat Market.
Diversification Opportunities for NYSE Composite and Saat Market
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between NYSE and Saat is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Saat Market Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Market Growth 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 Saat Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Market Growth has no effect on the direction of NYSE Composite i.e., NYSE Composite and Saat Market go up and down completely randomly.
Pair Corralation between NYSE Composite and Saat Market
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.02 times more return on investment than Saat Market. However, NYSE Composite is 1.02 times more volatile than Saat Market Growth. It trades about 0.11 of its potential returns per unit of risk. Saat Market Growth is currently generating about 0.09 per unit of risk. If you would invest 1,594,944 in NYSE Composite on September 3, 2024 and sell it today you would earn a total of 426,378 from holding NYSE Composite or generate 26.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Saat Market Growth
Performance |
| Timeline |
NYSE Composite and Saat Market Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Saat Market Growth
Pair trading matchups for Saat Market
Pair Trading with NYSE Composite and Saat Market
The main advantage of trading using opposite NYSE Composite and Saat Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Saat Market 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 Saat Market will offset losses from the drop in Saat Market's long position.| NYSE Composite vs. Lindblad Expeditions Holdings | NYSE Composite vs. LB Foster | NYSE Composite vs. HUTCHMED DRC | NYSE Composite vs. Bridgford Foods |
| Saat Market vs. Franklin High Yield | Saat Market vs. Bbh Intermediate Municipal | Saat Market vs. Victory High Income | Saat Market vs. Nuveen Minnesota Municipal |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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