Correlation Between NYSE Composite and INGERSOLL
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By analyzing existing cross correlation between NYSE Composite and INGERSOLL RAND GLOBAL HLDG, you can compare the effects of market volatilities on NYSE Composite and INGERSOLL 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 INGERSOLL. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and INGERSOLL.
Diversification Opportunities for NYSE Composite and INGERSOLL
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NYSE and INGERSOLL is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and INGERSOLL RAND GLOBAL HLDG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INGERSOLL RAND GLOBAL 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 INGERSOLL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INGERSOLL RAND GLOBAL has no effect on the direction of NYSE Composite i.e., NYSE Composite and INGERSOLL go up and down completely randomly.
Pair Corralation between NYSE Composite and INGERSOLL
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.0 times less return on investment than INGERSOLL. But when comparing it to its historical volatility, NYSE Composite is 2.02 times less risky than INGERSOLL. It trades about 0.41 of its potential returns per unit of risk. INGERSOLL RAND GLOBAL HLDG is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 10,432 in INGERSOLL RAND GLOBAL HLDG on September 2, 2024 and sell it today you would earn a total of 332.00 from holding INGERSOLL RAND GLOBAL HLDG or generate 3.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 61.9% |
| Values | Daily Returns |
NYSE Composite vs. INGERSOLL RAND GLOBAL HLDG
Performance |
| Timeline |
NYSE Composite and INGERSOLL Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
INGERSOLL RAND GLOBAL HLDG
Pair trading matchups for INGERSOLL
Pair Trading with NYSE Composite and INGERSOLL
The main advantage of trading using opposite NYSE Composite and INGERSOLL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, INGERSOLL 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 INGERSOLL will offset losses from the drop in INGERSOLL's long position.| NYSE Composite vs. Simon Property Group | NYSE Composite vs. Merit Medical Systems | NYSE Composite vs. Catalent | NYSE Composite vs. Titan Machinery |
| INGERSOLL vs. AEP TEX INC | INGERSOLL vs. US BANK NATIONAL | INGERSOLL vs. Bank of America | INGERSOLL vs. GE Aerospace |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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