Correlation Between NYSE Composite and Shunfeng International
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Shunfeng International 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 Shunfeng International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Shunfeng International Clean, you can compare the effects of market volatilities on NYSE Composite and Shunfeng International 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 Shunfeng International. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Shunfeng International.
Diversification Opportunities for NYSE Composite and Shunfeng International
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and Shunfeng is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Shunfeng International Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shunfeng International 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 Shunfeng International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shunfeng International has no effect on the direction of NYSE Composite i.e., NYSE Composite and Shunfeng International go up and down completely randomly.
Pair Corralation between NYSE Composite and Shunfeng International
Assuming the 90 days trading horizon NYSE Composite is expected to generate 29.95 times less return on investment than Shunfeng International. But when comparing it to its historical volatility, NYSE Composite is 28.1 times less risky than Shunfeng International. It trades about 0.17 of its potential returns per unit of risk. Shunfeng International Clean is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 0.13 in Shunfeng International Clean on August 31, 2024 and sell it today you would earn a total of 0.35 from holding Shunfeng International Clean or generate 269.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Shunfeng International Clean
Performance |
| Timeline |
NYSE Composite and Shunfeng International Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Shunfeng International Clean
Pair trading matchups for Shunfeng International
Pair Trading with NYSE Composite and Shunfeng International
The main advantage of trading using opposite NYSE Composite and Shunfeng International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Shunfeng International 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 Shunfeng International will offset losses from the drop in Shunfeng International's long position.| NYSE Composite vs. Nextplat Corp | NYSE Composite vs. Qualys Inc | NYSE Composite vs. Cadence Design Systems | NYSE Composite vs. Asure Software |
| Shunfeng International vs. Constellation Energy Corp | Shunfeng International vs. Orsted AS ADR | Shunfeng International vs. Orsted AS | Shunfeng International vs. HUMANA INC |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |