Correlation Between NYSE Composite and Occidental
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By analyzing existing cross correlation between NYSE Composite and Occidental Petroleum 66, you can compare the effects of market volatilities on NYSE Composite and Occidental 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 Occidental. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Occidental.
Diversification Opportunities for NYSE Composite and Occidental
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and Occidental is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Occidental Petroleum 66 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Occidental Petroleum 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 Occidental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Occidental Petroleum has no effect on the direction of NYSE Composite i.e., NYSE Composite and Occidental go up and down completely randomly.
Pair Corralation between NYSE Composite and Occidental
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.78 times more return on investment than Occidental. However, NYSE Composite is 1.29 times less risky than Occidental. It trades about 0.11 of its potential returns per unit of risk. Occidental Petroleum 66 is currently generating about 0.02 per unit of risk. If you would invest 1,550,264 in NYSE Composite on August 31, 2024 and sell it today you would earn a total of 476,940 from holding NYSE Composite or generate 30.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.86% |
| Values | Daily Returns |
NYSE Composite vs. Occidental Petroleum 66
Performance |
| Timeline |
NYSE Composite and Occidental Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Occidental Petroleum 66
Pair trading matchups for Occidental
Pair Trading with NYSE Composite and Occidental
The main advantage of trading using opposite NYSE Composite and Occidental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Occidental 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 Occidental will offset losses from the drop in Occidental's long position.| NYSE Composite vs. Nextplat Corp | NYSE Composite vs. Qualys Inc | NYSE Composite vs. Cadence Design Systems | NYSE Composite vs. Asure Software |
| Occidental vs. AEP TEX INC | Occidental vs. US BANK NATIONAL | Occidental vs. Bank of America | Occidental 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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