Correlation Between NYSE Composite and Unifi
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Unifi 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 Unifi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Unifi Inc, you can compare the effects of market volatilities on NYSE Composite and Unifi 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 Unifi. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Unifi.
Diversification Opportunities for NYSE Composite and Unifi
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and Unifi is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Unifi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unifi Inc 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 Unifi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unifi Inc has no effect on the direction of NYSE Composite i.e., NYSE Composite and Unifi go up and down completely randomly.
Pair Corralation between NYSE Composite and Unifi
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.23 times more return on investment than Unifi. However, NYSE Composite is 4.29 times less risky than Unifi. It trades about 0.24 of its potential returns per unit of risk. Unifi Inc is currently generating about -0.33 per unit of risk. If you would invest 1,954,967 in NYSE Composite on August 28, 2024 and sell it today you would earn a total of 67,069 from holding NYSE Composite or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Unifi Inc
Performance |
| Timeline |
NYSE Composite and Unifi Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Unifi Inc
Pair trading matchups for Unifi
Pair Trading with NYSE Composite and Unifi
The main advantage of trading using opposite NYSE Composite and Unifi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Unifi 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 Unifi will offset losses from the drop in Unifi's long position.| NYSE Composite vs. Hooker Furniture | NYSE Composite vs. Hudson Pacific Properties | NYSE Composite vs. Canlan Ice Sports | NYSE Composite vs. Boston Properties |
| Unifi vs. Albany International | Unifi vs. Toray Industries | Unifi vs. Culp Inc | Unifi vs. Toray Industries ADR |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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