Correlation Between NYSE Composite and Newell
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By analyzing existing cross correlation between NYSE Composite and Newell Brands 42, you can compare the effects of market volatilities on NYSE Composite and Newell 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 Newell. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Newell.
Diversification Opportunities for NYSE Composite and Newell
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and Newell is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Newell Brands 42 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newell Brands 42 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 Newell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newell Brands 42 has no effect on the direction of NYSE Composite i.e., NYSE Composite and Newell go up and down completely randomly.
Pair Corralation between NYSE Composite and Newell
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.55 times more return on investment than Newell. However, NYSE Composite is 1.55 times more volatile than Newell Brands 42. It trades about 0.14 of its potential returns per unit of risk. Newell Brands 42 is currently generating about 0.03 per unit of risk. If you would invest 1,620,776 in NYSE Composite on September 3, 2024 and sell it today you would earn a total of 400,546 from holding NYSE Composite or generate 24.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
NYSE Composite vs. Newell Brands 42
Performance |
| Timeline |
NYSE Composite and Newell Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Newell Brands 42
Pair trading matchups for Newell
Pair Trading with NYSE Composite and Newell
The main advantage of trading using opposite NYSE Composite and Newell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Newell 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 Newell will offset losses from the drop in Newell's long position.| NYSE Composite vs. Lindblad Expeditions Holdings | NYSE Composite vs. LB Foster | NYSE Composite vs. HUTCHMED DRC | NYSE Composite vs. Bridgford Foods |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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