Correlation Between NYSE Composite and APACHE
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By analyzing existing cross correlation between NYSE Composite and APACHE P 525, you can compare the effects of market volatilities on NYSE Composite and APACHE 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 APACHE. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and APACHE.
Diversification Opportunities for NYSE Composite and APACHE
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and APACHE is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and APACHE P 525 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APACHE P 525 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 APACHE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APACHE P 525 has no effect on the direction of NYSE Composite i.e., NYSE Composite and APACHE go up and down completely randomly.
Pair Corralation between NYSE Composite and APACHE
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.43 times more return on investment than APACHE. However, NYSE Composite is 2.34 times less risky than APACHE. It trades about 0.19 of its potential returns per unit of risk. APACHE P 525 is currently generating about -0.21 per unit of risk. If you would invest 1,956,073 in NYSE Composite on August 25, 2024 and sell it today you would earn a total of 56,272 from holding NYSE Composite or generate 2.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
NYSE Composite vs. APACHE P 525
Performance |
| Timeline |
NYSE Composite and APACHE Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
APACHE P 525
Pair trading matchups for APACHE
Pair Trading with NYSE Composite and APACHE
The main advantage of trading using opposite NYSE Composite and APACHE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, APACHE 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 APACHE will offset losses from the drop in APACHE's long position.| NYSE Composite vs. Awilco Drilling PLC | NYSE Composite vs. AKITA Drilling | NYSE Composite vs. SunOpta | NYSE Composite vs. Delek Drilling |
| APACHE vs. Ralph Lauren Corp | APACHE vs. Artisan Partners Asset | APACHE vs. Kontoor Brands | APACHE vs. Kite Realty Group |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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