Correlation Between NYSE Composite and EXELON
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By analyzing existing cross correlation between NYSE Composite and EXELON GENERATION LLC, you can compare the effects of market volatilities on NYSE Composite and EXELON 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 EXELON. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and EXELON.
Diversification Opportunities for NYSE Composite and EXELON
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and EXELON is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and EXELON GENERATION LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXELON GENERATION LLC 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 EXELON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXELON GENERATION LLC has no effect on the direction of NYSE Composite i.e., NYSE Composite and EXELON go up and down completely randomly.
Pair Corralation between NYSE Composite and EXELON
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.89 times more return on investment than EXELON. However, NYSE Composite is 1.13 times less risky than EXELON. It trades about 0.13 of its potential returns per unit of risk. EXELON GENERATION LLC is currently generating about -0.31 per unit of risk. If you would invest 1,959,424 in NYSE Composite on August 24, 2024 and sell it today you would earn a total of 37,406 from holding NYSE Composite or generate 1.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 60.87% |
| Values | Daily Returns |
NYSE Composite vs. EXELON GENERATION LLC
Performance |
| Timeline |
NYSE Composite and EXELON Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
EXELON GENERATION LLC
Pair trading matchups for EXELON
Pair Trading with NYSE Composite and EXELON
The main advantage of trading using opposite NYSE Composite and EXELON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, EXELON 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 EXELON will offset losses from the drop in EXELON's long position.| NYSE Composite vs. Awilco Drilling PLC | NYSE Composite vs. AKITA Drilling | NYSE Composite vs. SunOpta | NYSE Composite vs. Delek Drilling |
| EXELON vs. WEBTOON Entertainment Common | EXELON vs. Noble plc | EXELON vs. Lincoln Educational Services | EXELON vs. Integrated Drilling Equipment |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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