Correlation Between NYSE Composite and ENTERGY
Specify exactly 2 symbols:
By analyzing existing cross correlation between NYSE Composite and ENTERGY P NEW, you can compare the effects of market volatilities on NYSE Composite and ENTERGY 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 ENTERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and ENTERGY.
Diversification Opportunities for NYSE Composite and ENTERGY
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and ENTERGY is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and ENTERGY P NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENTERGY P NEW 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 ENTERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENTERGY P NEW has no effect on the direction of NYSE Composite i.e., NYSE Composite and ENTERGY go up and down completely randomly.
Pair Corralation between NYSE Composite and ENTERGY
Assuming the 90 days trading horizon NYSE Composite is expected to generate 3.55 times more return on investment than ENTERGY. However, NYSE Composite is 3.55 times more volatile than ENTERGY P NEW. It trades about 0.13 of its potential returns per unit of risk. ENTERGY P NEW is currently generating about 0.07 per unit of risk. If you would invest 1,691,113 in NYSE Composite on August 28, 2024 and sell it today you would earn a total of 330,923 from holding NYSE Composite or generate 19.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.09% |
| Values | Daily Returns |
NYSE Composite vs. ENTERGY P NEW
Performance |
| Timeline |
NYSE Composite and ENTERGY Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
ENTERGY P NEW
Pair trading matchups for ENTERGY
Pair Trading with NYSE Composite and ENTERGY
The main advantage of trading using opposite NYSE Composite and ENTERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, ENTERGY 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 ENTERGY will offset losses from the drop in ENTERGY's long position.| NYSE Composite vs. Vita Coco | NYSE Composite vs. Franklin Wireless Corp | NYSE Composite vs. Ambev SA ADR | NYSE Composite vs. Toro Co |
| ENTERGY vs. Parker Hannifin | ENTERGY vs. Ainsworth Game Technology | ENTERGY vs. SFL Corporation | ENTERGY vs. Papaya Growth Opportunity |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| 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 | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |