Correlation Between NYSE Composite and ACADIA
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By analyzing existing cross correlation between NYSE Composite and ACADIA HEALTHCARE INC, you can compare the effects of market volatilities on NYSE Composite and ACADIA 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 ACADIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and ACADIA.
Diversification Opportunities for NYSE Composite and ACADIA
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and ACADIA is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and ACADIA HEALTHCARE INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACADIA HEALTHCARE 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 ACADIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACADIA HEALTHCARE INC has no effect on the direction of NYSE Composite i.e., NYSE Composite and ACADIA go up and down completely randomly.
Pair Corralation between NYSE Composite and ACADIA
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.75 times more return on investment than ACADIA. However, NYSE Composite is 1.33 times less risky than ACADIA. It trades about 0.26 of its potential returns per unit of risk. ACADIA HEALTHCARE INC is currently generating about -0.13 per unit of risk. If you would invest 1,945,669 in NYSE Composite on August 30, 2024 and sell it today you would earn a total of 75,313 from holding NYSE Composite or generate 3.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 78.26% |
| Values | Daily Returns |
NYSE Composite vs. ACADIA HEALTHCARE INC
Performance |
| Timeline |
NYSE Composite and ACADIA Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
ACADIA HEALTHCARE INC
Pair trading matchups for ACADIA
Pair Trading with NYSE Composite and ACADIA
The main advantage of trading using opposite NYSE Composite and ACADIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, ACADIA 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 ACADIA will offset losses from the drop in ACADIA's long position.| NYSE Composite vs. Delek Drilling | NYSE Composite vs. Helmerich and Payne | NYSE Composite vs. Waste Management | NYSE Composite vs. US Global Investors |
| ACADIA vs. Radcom | ACADIA vs. Luxfer Holdings PLC | ACADIA vs. Sensient Technologies | ACADIA vs. Chemours Co |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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