Correlation Between NYSE Composite and FEDEX
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By analyzing existing cross correlation between NYSE Composite and FEDEX P, you can compare the effects of market volatilities on NYSE Composite and FEDEX 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 FEDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and FEDEX.
Diversification Opportunities for NYSE Composite and FEDEX
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NYSE and FEDEX is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and FEDEX P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEDEX 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 FEDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEDEX P has no effect on the direction of NYSE Composite i.e., NYSE Composite and FEDEX go up and down completely randomly.
Pair Corralation between NYSE Composite and FEDEX
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.2 times more return on investment than FEDEX. However, NYSE Composite is 1.2 times more volatile than FEDEX P. It trades about 0.08 of its potential returns per unit of risk. FEDEX P is currently generating about 0.02 per unit of risk. If you would invest 1,800,696 in NYSE Composite on November 28, 2024 and sell it today you would earn a total of 191,709 from holding NYSE Composite or generate 10.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.46% |
| Values | Daily Returns |
NYSE Composite vs. FEDEX P
Performance |
| Timeline |
NYSE Composite and FEDEX Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
FEDEX P
Pair trading matchups for FEDEX
Pair Trading with NYSE Composite and FEDEX
The main advantage of trading using opposite NYSE Composite and FEDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, FEDEX 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 FEDEX will offset losses from the drop in FEDEX's long position.| NYSE Composite vs. Inter Parfums | NYSE Composite vs. Amkor Technology | NYSE Composite vs. Unilever PLC ADR | NYSE Composite vs. Estee Lauder Companies |
| FEDEX vs. Pintec Technology Holdings | FEDEX vs. Chiba Bank Ltd | FEDEX vs. Suburban Propane Partners | FEDEX vs. NRG Energy |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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