Correlation Between NYSE Composite and COLGATE
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By analyzing existing cross correlation between NYSE Composite and COLGATE PALMOLIVE MEDIUM TERM, you can compare the effects of market volatilities on NYSE Composite and COLGATE 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 COLGATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and COLGATE.
Diversification Opportunities for NYSE Composite and COLGATE
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and COLGATE is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and COLGATE PALMOLIVE MEDIUM TERM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COLGATE PALMOLIVE 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 COLGATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COLGATE PALMOLIVE has no effect on the direction of NYSE Composite i.e., NYSE Composite and COLGATE go up and down completely randomly.
Pair Corralation between NYSE Composite and COLGATE
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.64 times more return on investment than COLGATE. However, NYSE Composite is 1.56 times less risky than COLGATE. It trades about 0.41 of its potential returns per unit of risk. COLGATE PALMOLIVE MEDIUM TERM is currently generating about 0.22 per unit of risk. If you would invest 1,925,354 in NYSE Composite on September 2, 2024 and sell it today you would earn a total of 101,850 from holding NYSE Composite or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 61.9% |
| Values | Daily Returns |
NYSE Composite vs. COLGATE PALMOLIVE MEDIUM TERM
Performance |
| Timeline |
NYSE Composite and COLGATE Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
COLGATE PALMOLIVE MEDIUM TERM
Pair trading matchups for COLGATE
Pair Trading with NYSE Composite and COLGATE
The main advantage of trading using opposite NYSE Composite and COLGATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, COLGATE 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 COLGATE will offset losses from the drop in COLGATE's long position.| NYSE Composite vs. Simon Property Group | NYSE Composite vs. Merit Medical Systems | NYSE Composite vs. Catalent | NYSE Composite vs. Titan Machinery |
| COLGATE vs. Where Food Comes | COLGATE vs. BBB Foods | COLGATE vs. FitLife Brands, Common | COLGATE vs. Grupo Televisa SAB |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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