Correlation Between NYSE Composite and CONSUMERS
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By analyzing existing cross correlation between NYSE Composite and CONSUMERS ENERGY 325, you can compare the effects of market volatilities on NYSE Composite and CONSUMERS 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 CONSUMERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and CONSUMERS.
Diversification Opportunities for NYSE Composite and CONSUMERS
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between NYSE and CONSUMERS is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and CONSUMERS ENERGY 325 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONSUMERS ENERGY 325 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 CONSUMERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONSUMERS ENERGY 325 has no effect on the direction of NYSE Composite i.e., NYSE Composite and CONSUMERS go up and down completely randomly.
Pair Corralation between NYSE Composite and CONSUMERS
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.49 times more return on investment than CONSUMERS. However, NYSE Composite is 2.03 times less risky than CONSUMERS. It trades about 0.09 of its potential returns per unit of risk. CONSUMERS ENERGY 325 is currently generating about 0.01 per unit of risk. If you would invest 1,721,232 in NYSE Composite on November 3, 2024 and sell it today you would earn a total of 278,650 from holding NYSE Composite or generate 16.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 58.3% |
| Values | Daily Returns |
NYSE Composite vs. CONSUMERS ENERGY 325
Performance |
| Timeline |
NYSE Composite and CONSUMERS Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
CONSUMERS ENERGY 325
Pair trading matchups for CONSUMERS
Pair Trading with NYSE Composite and CONSUMERS
The main advantage of trading using opposite NYSE Composite and CONSUMERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, CONSUMERS 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 CONSUMERS will offset losses from the drop in CONSUMERS's long position.| NYSE Composite vs. Palomar Holdings | NYSE Composite vs. The Peoples Insurance | NYSE Composite vs. Radian Group | NYSE Composite vs. Nascent Wine |
| CONSUMERS vs. AEP TEX INC | CONSUMERS vs. US BANK NATIONAL | CONSUMERS vs. LightPath Technologies | CONSUMERS vs. Reliance Global 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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