Correlation Between NYSE Composite and STANLN
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By analyzing existing cross correlation between NYSE Composite and STANLN 7767 16 NOV 28, you can compare the effects of market volatilities on NYSE Composite and STANLN 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 STANLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and STANLN.
Diversification Opportunities for NYSE Composite and STANLN
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and STANLN is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and STANLN 7767 16 NOV 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STANLN 7767 16 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 STANLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STANLN 7767 16 has no effect on the direction of NYSE Composite i.e., NYSE Composite and STANLN go up and down completely randomly.
Pair Corralation between NYSE Composite and STANLN
Assuming the 90 days trading horizon NYSE Composite is expected to generate 2.01 times more return on investment than STANLN. However, NYSE Composite is 2.01 times more volatile than STANLN 7767 16 NOV 28. It trades about 0.09 of its potential returns per unit of risk. STANLN 7767 16 NOV 28 is currently generating about -0.01 per unit of risk. If you would invest 1,466,255 in NYSE Composite on December 4, 2024 and sell it today you would earn a total of 516,093 from holding NYSE Composite or generate 35.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 48.68% |
| Values | Daily Returns |
NYSE Composite vs. STANLN 7767 16 NOV 28
Performance |
| Timeline |
NYSE Composite and STANLN Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
STANLN 7767 16 NOV 28
Pair trading matchups for STANLN
Pair Trading with NYSE Composite and STANLN
The main advantage of trading using opposite NYSE Composite and STANLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, STANLN 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 STANLN will offset losses from the drop in STANLN's long position.| NYSE Composite vs. Lincoln Educational Services | NYSE Composite vs. Scholastic | NYSE Composite vs. Integral Ad Science | NYSE Composite vs. Ihuman Inc |
| STANLN vs. Perseus Mining Limited | STANLN vs. Patterson UTI Energy | STANLN vs. Pembina Pipeline | STANLN vs. Harmony Gold Mining |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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