Correlation Between NYSE Composite and Under
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By analyzing existing cross correlation between NYSE Composite and Under Armour 325, you can compare the effects of market volatilities on NYSE Composite and Under 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 Under. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Under.
Diversification Opportunities for NYSE Composite and Under
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and Under is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Under Armour 325 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Under Armour 325 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 Under. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Under Armour 325 has no effect on the direction of NYSE Composite i.e., NYSE Composite and Under go up and down completely randomly.
Pair Corralation between NYSE Composite and Under
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.33 times more return on investment than Under. However, NYSE Composite is 1.33 times more volatile than Under Armour 325. It trades about 0.14 of its potential returns per unit of risk. Under Armour 325 is currently generating about -0.01 per unit of risk. If you would invest 1,804,550 in NYSE Composite on September 3, 2024 and sell it today you would earn a total of 222,654 from holding NYSE Composite or generate 12.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.4% |
| Values | Daily Returns |
NYSE Composite vs. Under Armour 325
Performance |
| Timeline |
NYSE Composite and Under Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Under Armour 325
Pair trading matchups for Under
Pair Trading with NYSE Composite and Under
The main advantage of trading using opposite NYSE Composite and Under positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Under 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 Under will offset losses from the drop in Under's long position.| NYSE Composite vs. Lindblad Expeditions Holdings | NYSE Composite vs. LB Foster | NYSE Composite vs. HUTCHMED DRC | NYSE Composite vs. Bridgford Foods |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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