Correlation Between NYSE Composite and GENERAL
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By analyzing existing cross correlation between NYSE Composite and GENERAL MLS INC, you can compare the effects of market volatilities on NYSE Composite and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and GENERAL.
Diversification Opportunities for NYSE Composite and GENERAL
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between NYSE and GENERAL is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and GENERAL MLS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL MLS INC 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL MLS INC has no effect on the direction of NYSE Composite i.e., NYSE Composite and GENERAL go up and down completely randomly.
Pair Corralation between NYSE Composite and GENERAL
Assuming the 90 days trading horizon NYSE Composite is expected to generate 74.04 times less return on investment than GENERAL. But when comparing it to its historical volatility, NYSE Composite is 92.92 times less risky than GENERAL. It trades about 0.08 of its potential returns per unit of risk. GENERAL MLS INC is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 9,232 in GENERAL MLS INC on September 3, 2024 and sell it today you would earn a total of 236.00 from holding GENERAL MLS INC or generate 2.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 44.04% |
| Values | Daily Returns |
NYSE Composite vs. GENERAL MLS INC
Performance |
| Timeline |
NYSE Composite and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
GENERAL MLS INC
Pair trading matchups for GENERAL
Pair Trading with NYSE Composite and GENERAL
The main advantage of trading using opposite NYSE Composite and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.| NYSE Composite vs. Lindblad Expeditions Holdings | NYSE Composite vs. LB Foster | NYSE Composite vs. HUTCHMED DRC | NYSE Composite vs. Bridgford Foods |
| GENERAL vs. Mesa Air Group | GENERAL vs. LB Foster | GENERAL vs. Hertz Global Holdings | GENERAL vs. Avis Budget 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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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