Correlation Between NYSE Composite and Siriuspoint
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Siriuspoint 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 Siriuspoint into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Siriuspoint, you can compare the effects of market volatilities on NYSE Composite and Siriuspoint 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 Siriuspoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Siriuspoint.
Diversification Opportunities for NYSE Composite and Siriuspoint
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NYSE and Siriuspoint is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Siriuspoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siriuspoint 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 Siriuspoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siriuspoint has no effect on the direction of NYSE Composite i.e., NYSE Composite and Siriuspoint go up and down completely randomly.
Pair Corralation between NYSE Composite and Siriuspoint
Assuming the 90 days trading horizon NYSE Composite is expected to generate 2.02 times less return on investment than Siriuspoint. But when comparing it to its historical volatility, NYSE Composite is 2.65 times less risky than Siriuspoint. It trades about 0.11 of its potential returns per unit of risk. Siriuspoint is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 941.00 in Siriuspoint on September 2, 2024 and sell it today you would earn a total of 601.00 from holding Siriuspoint or generate 63.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Siriuspoint
Performance |
| Timeline |
NYSE Composite and Siriuspoint Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Siriuspoint
Pair trading matchups for Siriuspoint
Pair Trading with NYSE Composite and Siriuspoint
The main advantage of trading using opposite NYSE Composite and Siriuspoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Siriuspoint 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 Siriuspoint will offset losses from the drop in Siriuspoint's long position.| NYSE Composite vs. Simon Property Group | NYSE Composite vs. Merit Medical Systems | NYSE Composite vs. Catalent | NYSE Composite vs. Titan Machinery |
| Siriuspoint vs. Maiden Holdings | Siriuspoint vs. Reinsurance Group of | Siriuspoint vs. Oxbridge Re Holdings | Siriuspoint vs. Greenlight Capital Re |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |