Correlation Between NYSE Composite and Shui On
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Shui On 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 Shui On into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Shui On Land, you can compare the effects of market volatilities on NYSE Composite and Shui On 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 Shui On. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Shui On.
Diversification Opportunities for NYSE Composite and Shui On
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between NYSE and Shui is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Shui On Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shui On Land 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 Shui On. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shui On Land has no effect on the direction of NYSE Composite i.e., NYSE Composite and Shui On go up and down completely randomly.
Pair Corralation between NYSE Composite and Shui On
Assuming the 90 days trading horizon NYSE Composite is expected to generate 23.08 times less return on investment than Shui On. But when comparing it to its historical volatility, NYSE Composite is 32.88 times less risky than Shui On. It trades about 0.08 of its potential returns per unit of risk. Shui On Land is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 12.00 in Shui On Land on September 12, 2024 and sell it today you would lose (6.00) from holding Shui On Land or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 31.38% |
| Values | Daily Returns |
NYSE Composite vs. Shui On Land
Performance |
| Timeline |
NYSE Composite and Shui On Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Shui On Land
Pair trading matchups for Shui On
Pair Trading with NYSE Composite and Shui On
The main advantage of trading using opposite NYSE Composite and Shui On positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Shui On 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 Shui On will offset losses from the drop in Shui On's long position.| NYSE Composite vs. Teleflex Incorporated | NYSE Composite vs. Victorias Secret Co | NYSE Composite vs. Under Armour C | NYSE Composite vs. Steven Madden |
| Shui On vs. The Wendys Co | Shui On vs. American Hotel Income | Shui On vs. Tyson Foods | Shui On vs. Boyd Gaming |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |