Correlation Between NYSE Composite and LOEWS
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By analyzing existing cross correlation between NYSE Composite and LOEWS P 375, you can compare the effects of market volatilities on NYSE Composite and LOEWS 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 LOEWS. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and LOEWS.
Diversification Opportunities for NYSE Composite and LOEWS
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and LOEWS is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and LOEWS P 375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOEWS P 375 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 LOEWS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOEWS P 375 has no effect on the direction of NYSE Composite i.e., NYSE Composite and LOEWS go up and down completely randomly.
Pair Corralation between NYSE Composite and LOEWS
Assuming the 90 days trading horizon NYSE Composite is expected to generate 4.85 times more return on investment than LOEWS. However, NYSE Composite is 4.85 times more volatile than LOEWS P 375. It trades about 0.23 of its potential returns per unit of risk. LOEWS P 375 is currently generating about -0.03 per unit of risk. If you would invest 1,954,967 in NYSE Composite on August 29, 2024 and sell it today you would earn a total of 66,015 from holding NYSE Composite or generate 3.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
NYSE Composite vs. LOEWS P 375
Performance |
| Timeline |
NYSE Composite and LOEWS Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
LOEWS P 375
Pair trading matchups for LOEWS
Pair Trading with NYSE Composite and LOEWS
The main advantage of trading using opposite NYSE Composite and LOEWS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, LOEWS 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 LOEWS will offset losses from the drop in LOEWS's long position.| NYSE Composite vs. Sphere Entertainment Co | NYSE Composite vs. Weibo Corp | NYSE Composite vs. BCE Inc | NYSE Composite vs. Pinterest |
| LOEWS vs. Postal Realty Trust | LOEWS vs. Merit Medical Systems | LOEWS vs. Mesa Air Group | LOEWS vs. Westinghouse Air Brake |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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