Correlation Between NYSE Composite and Graham
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By analyzing existing cross correlation between NYSE Composite and Graham Holdings 575, you can compare the effects of market volatilities on NYSE Composite and Graham 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 Graham. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Graham.
Diversification Opportunities for NYSE Composite and Graham
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and Graham is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Graham Holdings 575 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graham Holdings 575 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 Graham. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graham Holdings 575 has no effect on the direction of NYSE Composite i.e., NYSE Composite and Graham go up and down completely randomly.
Pair Corralation between NYSE Composite and Graham
Assuming the 90 days trading horizon NYSE Composite is expected to generate 3.06 times more return on investment than Graham. However, NYSE Composite is 3.06 times more volatile than Graham Holdings 575. It trades about 0.41 of its potential returns per unit of risk. Graham Holdings 575 is currently generating about -0.21 per unit of risk. If you would invest 1,925,354 in NYSE Composite on September 2, 2024 and sell it today you would earn a total of 101,850 from holding NYSE Composite or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 52.38% |
| Values | Daily Returns |
NYSE Composite vs. Graham Holdings 575
Performance |
| Timeline |
NYSE Composite and Graham Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Graham Holdings 575
Pair trading matchups for Graham
Pair Trading with NYSE Composite and Graham
The main advantage of trading using opposite NYSE Composite and Graham positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Graham 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 Graham will offset losses from the drop in Graham's long position.| NYSE Composite vs. Simon Property Group | NYSE Composite vs. Merit Medical Systems | NYSE Composite vs. Catalent | NYSE Composite vs. Titan Machinery |
| Graham vs. Harmony Gold Mining | Graham vs. Parker Hannifin | Graham vs. Village Super Market | Graham vs. GMS Inc |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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