Correlation Between NYSE Composite and Macquarie ETF
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Macquarie ETF 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 Macquarie ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Macquarie ETF Trust, you can compare the effects of market volatilities on NYSE Composite and Macquarie ETF 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 Macquarie ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Macquarie ETF.
Diversification Opportunities for NYSE Composite and Macquarie ETF
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NYSE and Macquarie is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Macquarie ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie ETF Trust 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 Macquarie ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquarie ETF Trust has no effect on the direction of NYSE Composite i.e., NYSE Composite and Macquarie ETF go up and down completely randomly.
Pair Corralation between NYSE Composite and Macquarie ETF
Assuming the 90 days trading horizon NYSE Composite is expected to generate 8.02 times more return on investment than Macquarie ETF. However, NYSE Composite is 8.02 times more volatile than Macquarie ETF Trust. It trades about 0.14 of its potential returns per unit of risk. Macquarie ETF Trust is currently generating about 0.27 per unit of risk. If you would invest 1,800,696 in NYSE Composite on September 1, 2024 and sell it today you would earn a total of 226,508 from holding NYSE Composite or generate 12.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
NYSE Composite vs. Macquarie ETF Trust
Performance |
| Timeline |
NYSE Composite and Macquarie ETF Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Macquarie ETF Trust
Pair trading matchups for Macquarie ETF
Pair Trading with NYSE Composite and Macquarie ETF
The main advantage of trading using opposite NYSE Composite and Macquarie ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Macquarie ETF 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 Macquarie ETF will offset losses from the drop in Macquarie ETF's long position.| NYSE Composite vs. Acumen Pharmaceuticals | NYSE Composite vs. Mind Medicine | NYSE Composite vs. NL Industries | NYSE Composite vs. Ecovyst |
| Macquarie ETF vs. SSGA Active Trust | Macquarie ETF vs. SPDR Nuveen Municipal | Macquarie ETF vs. iShares Short Maturity | Macquarie ETF vs. First Trust Flexible |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |