Correlation Between NYSE Composite and Graphic
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By analyzing existing cross correlation between NYSE Composite and Graphic Packaging International, you can compare the effects of market volatilities on NYSE Composite and Graphic 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 Graphic. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Graphic.
Diversification Opportunities for NYSE Composite and Graphic
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and Graphic is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Graphic Packaging Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphic Packaging 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 Graphic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphic Packaging has no effect on the direction of NYSE Composite i.e., NYSE Composite and Graphic go up and down completely randomly.
Pair Corralation between NYSE Composite and Graphic
Assuming the 90 days trading horizon NYSE Composite is expected to generate 201.59 times less return on investment than Graphic. But when comparing it to its historical volatility, NYSE Composite is 151.71 times less risky than Graphic. It trades about 0.08 of its potential returns per unit of risk. Graphic Packaging International is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 8,884 in Graphic Packaging International on August 26, 2024 and sell it today you would earn a total of 420.00 from holding Graphic Packaging International or generate 4.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.89% |
| Values | Daily Returns |
NYSE Composite vs. Graphic Packaging Internationa
Performance |
| Timeline |
NYSE Composite and Graphic Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Graphic Packaging International
Pair trading matchups for Graphic
Pair Trading with NYSE Composite and Graphic
The main advantage of trading using opposite NYSE Composite and Graphic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Graphic 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 Graphic will offset losses from the drop in Graphic's long position.| NYSE Composite vs. Glacier Bancorp | NYSE Composite vs. LithiumBank Resources Corp | NYSE Composite vs. Stepstone Group | NYSE Composite vs. Pintec Technology Holdings |
| Graphic vs. The Coca Cola | Graphic vs. JPMorgan Chase Co | Graphic vs. Dupont De Nemours | Graphic vs. Alcoa Corp |
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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