Correlation Between NYSE Composite and BATSLN
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By analyzing existing cross correlation between NYSE Composite and BATSLN 475 01 NOV 42, you can compare the effects of market volatilities on NYSE Composite and BATSLN 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 BATSLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and BATSLN.
Diversification Opportunities for NYSE Composite and BATSLN
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and BATSLN is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and BATSLN 475 01 NOV 42 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BATSLN 475 01 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 BATSLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BATSLN 475 01 has no effect on the direction of NYSE Composite i.e., NYSE Composite and BATSLN go up and down completely randomly.
Pair Corralation between NYSE Composite and BATSLN
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.15 times more return on investment than BATSLN. However, NYSE Composite is 6.53 times less risky than BATSLN. It trades about 0.17 of its potential returns per unit of risk. BATSLN 475 01 NOV 42 is currently generating about -0.07 per unit of risk. If you would invest 1,901,742 in NYSE Composite on September 2, 2024 and sell it today you would earn a total of 125,462 from holding NYSE Composite or generate 6.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 39.06% |
| Values | Daily Returns |
NYSE Composite vs. BATSLN 475 01 NOV 42
Performance |
| Timeline |
NYSE Composite and BATSLN Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
BATSLN 475 01 NOV 42
Pair trading matchups for BATSLN
Pair Trading with NYSE Composite and BATSLN
The main advantage of trading using opposite NYSE Composite and BATSLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, BATSLN 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 BATSLN will offset losses from the drop in BATSLN's long position.| NYSE Composite vs. Simon Property Group | NYSE Composite vs. Merit Medical Systems | NYSE Composite vs. Catalent | NYSE Composite vs. Titan Machinery |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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