Correlation Between NYSE Composite and BORGWARNER
Specify exactly 2 symbols:
By analyzing existing cross correlation between NYSE Composite and BORGWARNER INC 4375, you can compare the effects of market volatilities on NYSE Composite and BORGWARNER 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 BORGWARNER. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and BORGWARNER.
Diversification Opportunities for NYSE Composite and BORGWARNER
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and BORGWARNER is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and BORGWARNER INC 4375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BORGWARNER INC 4375 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 BORGWARNER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BORGWARNER INC 4375 has no effect on the direction of NYSE Composite i.e., NYSE Composite and BORGWARNER go up and down completely randomly.
Pair Corralation between NYSE Composite and BORGWARNER
Assuming the 90 days trading horizon NYSE Composite is expected to generate 134.07 times less return on investment than BORGWARNER. But when comparing it to its historical volatility, NYSE Composite is 156.77 times less risky than BORGWARNER. It trades about 0.11 of its potential returns per unit of risk. BORGWARNER INC 4375 is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 7,914 in BORGWARNER INC 4375 on August 31, 2024 and sell it today you would lose (695.00) from holding BORGWARNER INC 4375 or give up 8.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 48.4% |
| Values | Daily Returns |
NYSE Composite vs. BORGWARNER INC 4375
Performance |
| Timeline |
NYSE Composite and BORGWARNER Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
BORGWARNER INC 4375
Pair trading matchups for BORGWARNER
Pair Trading with NYSE Composite and BORGWARNER
The main advantage of trading using opposite NYSE Composite and BORGWARNER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, BORGWARNER 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 BORGWARNER will offset losses from the drop in BORGWARNER's long position.| NYSE Composite vs. Nextplat Corp | NYSE Composite vs. Qualys Inc | NYSE Composite vs. Cadence Design Systems | NYSE Composite vs. Asure Software |
| BORGWARNER vs. AEP TEX INC | BORGWARNER vs. US BANK NATIONAL | BORGWARNER vs. Bank of America | BORGWARNER vs. GE Aerospace |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |