Correlation Between NYSE Composite and CARRIER
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By analyzing existing cross correlation between NYSE Composite and CARRIER GLOBAL P, you can compare the effects of market volatilities on NYSE Composite and CARRIER 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 CARRIER. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and CARRIER.
Diversification Opportunities for NYSE Composite and CARRIER
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and CARRIER is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and CARRIER GLOBAL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CARRIER GLOBAL P 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 CARRIER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CARRIER GLOBAL P has no effect on the direction of NYSE Composite i.e., NYSE Composite and CARRIER go up and down completely randomly.
Pair Corralation between NYSE Composite and CARRIER
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.69 times more return on investment than CARRIER. However, NYSE Composite is 1.69 times more volatile than CARRIER GLOBAL P. It trades about 0.14 of its potential returns per unit of risk. CARRIER GLOBAL P is currently generating about -0.02 per unit of risk. If you would invest 1,613,685 in NYSE Composite on September 2, 2024 and sell it today you would earn a total of 413,519 from holding NYSE Composite or generate 25.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
NYSE Composite vs. CARRIER GLOBAL P
Performance |
| Timeline |
NYSE Composite and CARRIER Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
CARRIER GLOBAL P
Pair trading matchups for CARRIER
Pair Trading with NYSE Composite and CARRIER
The main advantage of trading using opposite NYSE Composite and CARRIER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, CARRIER 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 CARRIER will offset losses from the drop in CARRIER's long position.| NYSE Composite vs. Simon Property Group | NYSE Composite vs. Merit Medical Systems | NYSE Composite vs. Catalent | NYSE Composite vs. Titan Machinery |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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