Correlation Between NYSE Composite and REGENCY
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By analyzing existing cross correlation between NYSE Composite and REGENCY CTRS L, you can compare the effects of market volatilities on NYSE Composite and REGENCY 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 REGENCY. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and REGENCY.
Diversification Opportunities for NYSE Composite and REGENCY
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and REGENCY is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and REGENCY CTRS L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REGENCY CTRS L 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 REGENCY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REGENCY CTRS L has no effect on the direction of NYSE Composite i.e., NYSE Composite and REGENCY go up and down completely randomly.
Pair Corralation between NYSE Composite and REGENCY
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.84 times more return on investment than REGENCY. However, NYSE Composite is 1.2 times less risky than REGENCY. It trades about 0.24 of its potential returns per unit of risk. REGENCY CTRS L is currently generating about -0.26 per unit of risk. If you would invest 1,954,967 in NYSE Composite on August 28, 2024 and sell it today you would earn a total of 67,069 from holding NYSE Composite or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 72.73% |
| Values | Daily Returns |
NYSE Composite vs. REGENCY CTRS L
Performance |
| Timeline |
NYSE Composite and REGENCY Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
REGENCY CTRS L
Pair trading matchups for REGENCY
Pair Trading with NYSE Composite and REGENCY
The main advantage of trading using opposite NYSE Composite and REGENCY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, REGENCY 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 REGENCY will offset losses from the drop in REGENCY's long position.| NYSE Composite vs. Vita Coco | NYSE Composite vs. Franklin Wireless Corp | NYSE Composite vs. Ambev SA ADR | NYSE Composite vs. Toro Co |
| REGENCY vs. PGE Corp | REGENCY vs. Pintec Technology Holdings | REGENCY vs. Western Union Co | REGENCY vs. Discover Financial Services |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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