Correlation Between NYSE Composite and Sturgis Bancorp
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Sturgis Bancorp 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 Sturgis Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Sturgis Bancorp, you can compare the effects of market volatilities on NYSE Composite and Sturgis Bancorp 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 Sturgis Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Sturgis Bancorp.
Diversification Opportunities for NYSE Composite and Sturgis Bancorp
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and Sturgis is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Sturgis Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sturgis Bancorp 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 Sturgis Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sturgis Bancorp has no effect on the direction of NYSE Composite i.e., NYSE Composite and Sturgis Bancorp go up and down completely randomly.
Pair Corralation between NYSE Composite and Sturgis Bancorp
If you would invest 1,596,299 in NYSE Composite on August 25, 2024 and sell it today you would earn a total of 416,046 from holding NYSE Composite or generate 26.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
NYSE Composite vs. Sturgis Bancorp
Performance |
| Timeline |
NYSE Composite and Sturgis Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Sturgis Bancorp
Pair trading matchups for Sturgis Bancorp
Pair Trading with NYSE Composite and Sturgis Bancorp
The main advantage of trading using opposite NYSE Composite and Sturgis Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Sturgis Bancorp 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 Sturgis Bancorp will offset losses from the drop in Sturgis Bancorp's long position.| NYSE Composite vs. Glacier Bancorp | NYSE Composite vs. LithiumBank Resources Corp | NYSE Composite vs. Stepstone Group | NYSE Composite vs. Pintec Technology Holdings |
| Sturgis Bancorp vs. FS Bancorp | Sturgis Bancorp vs. Eastern Michigan Financial | Sturgis Bancorp vs. Grand River Commerce | Sturgis Bancorp vs. Bank of Botetourt |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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