Correlation Between NYSE Composite and BIOGEN
Specify exactly 2 symbols:
By analyzing existing cross correlation between NYSE Composite and BIOGEN INC 405, you can compare the effects of market volatilities on NYSE Composite and BIOGEN 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 BIOGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and BIOGEN.
Diversification Opportunities for NYSE Composite and BIOGEN
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and BIOGEN is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and BIOGEN INC 405 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIOGEN INC 405 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 BIOGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIOGEN INC 405 has no effect on the direction of NYSE Composite i.e., NYSE Composite and BIOGEN go up and down completely randomly.
Pair Corralation between NYSE Composite and BIOGEN
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.74 times more return on investment than BIOGEN. However, NYSE Composite is 1.74 times more volatile than BIOGEN INC 405. It trades about 0.42 of its potential returns per unit of risk. BIOGEN INC 405 is currently generating about -0.17 per unit of risk. If you would invest 1,923,895 in NYSE Composite on September 1, 2024 and sell it today you would earn a total of 103,309 from holding NYSE Composite or generate 5.37% 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. BIOGEN INC 405
Performance |
| Timeline |
NYSE Composite and BIOGEN Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
BIOGEN INC 405
Pair trading matchups for BIOGEN
Pair Trading with NYSE Composite and BIOGEN
The main advantage of trading using opposite NYSE Composite and BIOGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, BIOGEN 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 BIOGEN will offset losses from the drop in BIOGEN's long position.| NYSE Composite vs. Acumen Pharmaceuticals | NYSE Composite vs. Mind Medicine | NYSE Composite vs. NL Industries | NYSE Composite vs. Ecovyst |
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 .
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |