Correlation Between NYSE Composite and MUNRE
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By analyzing existing cross correlation between NYSE Composite and MUNRE 5875 23 MAY 42, you can compare the effects of market volatilities on NYSE Composite and MUNRE 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 MUNRE. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and MUNRE.
Diversification Opportunities for NYSE Composite and MUNRE
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and MUNRE is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and MUNRE 5875 23 MAY 42 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MUNRE 5875 23 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 MUNRE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MUNRE 5875 23 has no effect on the direction of NYSE Composite i.e., NYSE Composite and MUNRE go up and down completely randomly.
Pair Corralation between NYSE Composite and MUNRE
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.29 times less return on investment than MUNRE. But when comparing it to its historical volatility, NYSE Composite is 5.85 times less risky than MUNRE. It trades about 0.09 of its potential returns per unit of risk. MUNRE 5875 23 MAY 42 is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 10,100 in MUNRE 5875 23 MAY 42 on November 3, 2024 and sell it today you would earn a total of 38.00 from holding MUNRE 5875 23 MAY 42 or generate 0.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 30.77% |
| Values | Daily Returns |
NYSE Composite vs. MUNRE 5875 23 MAY 42
Performance |
| Timeline |
NYSE Composite and MUNRE Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
MUNRE 5875 23 MAY 42
Pair trading matchups for MUNRE
Pair Trading with NYSE Composite and MUNRE
The main advantage of trading using opposite NYSE Composite and MUNRE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, MUNRE 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 MUNRE will offset losses from the drop in MUNRE's long position.| NYSE Composite vs. Arrow Electronics | NYSE Composite vs. Cirmaker Technology | NYSE Composite vs. Zhihu Inc ADR | NYSE Composite vs. Weibo Corp |
| MUNRE vs. TRI Pointe Homes | MUNRE vs. Aris Water Solutions | MUNRE vs. Autohome | MUNRE vs. Orion Office Reit |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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