Correlation Between NYSE Composite and Stellar AfricaGold
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Stellar AfricaGold 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 Stellar AfricaGold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Stellar AfricaGold, you can compare the effects of market volatilities on NYSE Composite and Stellar AfricaGold 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 Stellar AfricaGold. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Stellar AfricaGold.
Diversification Opportunities for NYSE Composite and Stellar AfricaGold
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and Stellar is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Stellar AfricaGold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stellar AfricaGold 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 Stellar AfricaGold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stellar AfricaGold has no effect on the direction of NYSE Composite i.e., NYSE Composite and Stellar AfricaGold go up and down completely randomly.
Pair Corralation between NYSE Composite and Stellar AfricaGold
If you would invest 1,985,329 in NYSE Composite on September 13, 2024 and sell it today you would earn a total of 3,774 from holding NYSE Composite or generate 0.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
NYSE Composite vs. Stellar AfricaGold
Performance |
| Timeline |
NYSE Composite and Stellar AfricaGold Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Stellar AfricaGold
Pair trading matchups for Stellar AfricaGold
Pair Trading with NYSE Composite and Stellar AfricaGold
The main advantage of trading using opposite NYSE Composite and Stellar AfricaGold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Stellar AfricaGold 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 Stellar AfricaGold will offset losses from the drop in Stellar AfricaGold's long position.| NYSE Composite vs. Boston Beer | NYSE Composite vs. Freedom Bank of | NYSE Composite vs. KeyCorp | NYSE Composite vs. LithiumBank Resources Corp |
| Stellar AfricaGold vs. Franco Nevada | Stellar AfricaGold vs. Wheaton Precious Metals | Stellar AfricaGold vs. Seabridge Gold | Stellar AfricaGold vs. Osisko Gold Ro |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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