Correlation Between NYSE Composite and Soligenix
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Soligenix 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 Soligenix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Soligenix, you can compare the effects of market volatilities on NYSE Composite and Soligenix 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 Soligenix. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Soligenix.
Diversification Opportunities for NYSE Composite and Soligenix
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and Soligenix is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Soligenix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soligenix 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 Soligenix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soligenix has no effect on the direction of NYSE Composite i.e., NYSE Composite and Soligenix go up and down completely randomly.
Pair Corralation between NYSE Composite and Soligenix
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.26 times more return on investment than Soligenix. However, NYSE Composite is 3.82 times less risky than Soligenix. It trades about 0.24 of its potential returns per unit of risk. Soligenix is currently generating about -0.27 per unit of risk. If you would invest 1,945,627 in NYSE Composite on August 26, 2024 and sell it today you would earn a total of 66,718 from holding NYSE Composite or generate 3.43% 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. Soligenix
Performance |
| Timeline |
NYSE Composite and Soligenix Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Soligenix
Pair trading matchups for Soligenix
Pair Trading with NYSE Composite and Soligenix
The main advantage of trading using opposite NYSE Composite and Soligenix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Soligenix 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 Soligenix will offset losses from the drop in Soligenix's long position.| NYSE Composite vs. Grocery Outlet Holding | NYSE Composite vs. Tencent Music Entertainment | NYSE Composite vs. SunLink Health Systems | NYSE Composite vs. Getty Realty |
| Soligenix vs. Zura Bio Limited | Soligenix vs. Phio Pharmaceuticals Corp | Soligenix vs. Immix Biopharma | Soligenix vs. Addex Therapeutics |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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