Correlation Between NYSE Composite and UNITED
Specify exactly 2 symbols:
By analyzing existing cross correlation between NYSE Composite and UNITED PARCEL SVC, you can compare the effects of market volatilities on NYSE Composite and UNITED 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 UNITED. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and UNITED.
Diversification Opportunities for NYSE Composite and UNITED
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and UNITED is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and UNITED PARCEL SVC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITED PARCEL SVC 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 UNITED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITED PARCEL SVC has no effect on the direction of NYSE Composite i.e., NYSE Composite and UNITED go up and down completely randomly.
Pair Corralation between NYSE Composite and UNITED
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.9 times more return on investment than UNITED. However, NYSE Composite is 1.11 times less risky than UNITED. It trades about 0.17 of its potential returns per unit of risk. UNITED PARCEL SVC is currently generating about -0.04 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 | Very Weak |
| Accuracy | 90.63% |
| Values | Daily Returns |
NYSE Composite vs. UNITED PARCEL SVC
Performance |
| Timeline |
NYSE Composite and UNITED Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
UNITED PARCEL SVC
Pair trading matchups for UNITED
Pair Trading with NYSE Composite and UNITED
The main advantage of trading using opposite NYSE Composite and UNITED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, UNITED 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 UNITED will offset losses from the drop in UNITED'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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |