Correlation Between NYSE Composite and SSC Technologies
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and SSC Technologies 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 SSC Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and SSC Technologies Holdings, you can compare the effects of market volatilities on NYSE Composite and SSC Technologies 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 SSC Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and SSC Technologies.
Diversification Opportunities for NYSE Composite and SSC Technologies
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NYSE and SSC is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and SSC Technologies Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSC Technologies Holdings 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 SSC Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSC Technologies Holdings has no effect on the direction of NYSE Composite i.e., NYSE Composite and SSC Technologies go up and down completely randomly.
Pair Corralation between NYSE Composite and SSC Technologies
Assuming the 90 days trading horizon NYSE Composite is expected to generate 2.72 times less return on investment than SSC Technologies. But when comparing it to its historical volatility, NYSE Composite is 1.62 times less risky than SSC Technologies. It trades about 0.24 of its potential returns per unit of risk. SSC Technologies Holdings is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest 7,013 in SSC Technologies Holdings on August 28, 2024 and sell it today you would earn a total of 674.00 from holding SSC Technologies Holdings or generate 9.61% 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. SSC Technologies Holdings
Performance |
| Timeline |
NYSE Composite and SSC Technologies Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
SSC Technologies Holdings
Pair trading matchups for SSC Technologies
Pair Trading with NYSE Composite and SSC Technologies
The main advantage of trading using opposite NYSE Composite and SSC Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, SSC Technologies 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 SSC Technologies will offset losses from the drop in SSC Technologies' long position.| NYSE Composite vs. Hooker Furniture | NYSE Composite vs. Hudson Pacific Properties | NYSE Composite vs. Canlan Ice Sports | NYSE Composite vs. Boston Properties |
| SSC Technologies vs. Aspen Technology | SSC Technologies vs. Bentley Systems | SSC Technologies vs. Tyler Technologies | SSC Technologies vs. Blackbaud |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |