Correlation Between NYSE Composite and 69351UAU7
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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 69351UAU7 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 69351UAU7. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and 69351UAU7.
Diversification Opportunities for NYSE Composite and 69351UAU7
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NYSE and 69351UAU7 is 0.27. 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 69351UAU7. 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 69351UAU7 go up and down completely randomly.
Pair Corralation between NYSE Composite and 69351UAU7
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.74 times more return on investment than 69351UAU7. However, NYSE Composite is 1.36 times less risky than 69351UAU7. It trades about 0.26 of its potential returns per unit of risk. PPL ELEC UTILS is currently generating about 0.11 per unit of risk. If you would invest 1,945,669 in NYSE Composite on August 30, 2024 and sell it today you would earn a total of 75,313 from holding NYSE Composite or generate 3.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 56.52% |
| Values | Daily Returns |
NYSE Composite vs. PPL ELEC UTILS
Performance |
| Timeline |
NYSE Composite and 69351UAU7 Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
PPL ELEC UTILS
Pair trading matchups for 69351UAU7
Pair Trading with NYSE Composite and 69351UAU7
The main advantage of trading using opposite NYSE Composite and 69351UAU7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, 69351UAU7 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 69351UAU7 will offset losses from the drop in 69351UAU7's long position.| NYSE Composite vs. Delek Drilling | NYSE Composite vs. Helmerich and Payne | NYSE Composite vs. Waste Management | NYSE Composite vs. US Global Investors |
| 69351UAU7 vs. Meiwu Technology Co | 69351UAU7 vs. Weyco Group | 69351UAU7 vs. Bt Brands | 69351UAU7 vs. Boyd Gaming |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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