Correlation Between NYSE Composite and 69351UAR4
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By analyzing existing cross correlation between NYSE Composite and PPL ELEC UTILS, you can compare the effects of market volatilities on NYSE Composite and 69351UAR4 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 69351UAR4. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and 69351UAR4.
Diversification Opportunities for NYSE Composite and 69351UAR4
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and 69351UAR4 is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and PPL ELEC UTILS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PPL ELEC UTILS 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 69351UAR4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PPL ELEC UTILS has no effect on the direction of NYSE Composite i.e., NYSE Composite and 69351UAR4 go up and down completely randomly.
Pair Corralation between NYSE Composite and 69351UAR4
Assuming the 90 days trading horizon NYSE Composite is expected to under-perform the 69351UAR4. But the index apears to be less risky and, when comparing its historical volatility, NYSE Composite is 1.76 times less risky than 69351UAR4. The index trades about -0.02 of its potential returns per unit of risk. The PPL ELEC UTILS is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 9,041 in PPL ELEC UTILS on November 28, 2024 and sell it today you would earn a total of 243.00 from holding PPL ELEC UTILS or generate 2.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 52.38% |
| Values | Daily Returns |
NYSE Composite vs. PPL ELEC UTILS
Performance |
| Timeline |
NYSE Composite and 69351UAR4 Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
PPL ELEC UTILS
Pair trading matchups for 69351UAR4
Pair Trading with NYSE Composite and 69351UAR4
The main advantage of trading using opposite NYSE Composite and 69351UAR4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, 69351UAR4 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 69351UAR4 will offset losses from the drop in 69351UAR4's long position.| NYSE Composite vs. Inter Parfums | NYSE Composite vs. Amkor Technology | NYSE Composite vs. Unilever PLC ADR | NYSE Composite vs. Estee Lauder Companies |
| 69351UAR4 vs. AEP TEX INC | 69351UAR4 vs. EastGroup Properties | 69351UAR4 vs. Tat Techno | 69351UAR4 vs. Intevac |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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