Correlation Between NYSE Composite and STORE
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By analyzing existing cross correlation between NYSE Composite and STORE CAP P, you can compare the effects of market volatilities on NYSE Composite and STORE 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 STORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and STORE.
Diversification Opportunities for NYSE Composite and STORE
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and STORE is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and STORE CAP P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STORE CAP P 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 STORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STORE CAP P has no effect on the direction of NYSE Composite i.e., NYSE Composite and STORE go up and down completely randomly.
Pair Corralation between NYSE Composite and STORE
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.22 times more return on investment than STORE. However, NYSE Composite is 4.47 times less risky than STORE. It trades about 0.43 of its potential returns per unit of risk. STORE CAP P is currently generating about -0.25 per unit of risk. If you would invest 1,924,339 in NYSE Composite on September 3, 2024 and sell it today you would earn a total of 102,865 from holding NYSE Composite or generate 5.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 65.0% |
| Values | Daily Returns |
NYSE Composite vs. STORE CAP P
Performance |
| Timeline |
NYSE Composite and STORE Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
STORE CAP P
Pair trading matchups for STORE
Pair Trading with NYSE Composite and STORE
The main advantage of trading using opposite NYSE Composite and STORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, STORE 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 STORE will offset losses from the drop in STORE's long position.| NYSE Composite vs. Lindblad Expeditions Holdings | NYSE Composite vs. LB Foster | NYSE Composite vs. HUTCHMED DRC | NYSE Composite vs. Bridgford Foods |
| STORE vs. Sable Offshore Corp | STORE vs. Getty Copper | STORE vs. Nabors Industries | STORE vs. Electrovaya Common Shares |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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