Correlation Between NYSE Composite and Aquila Tax
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Aquila Tax at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining NYSE Composite and Aquila Tax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Aquila Tax Free Fund, you can compare the effects of market volatilities on NYSE Composite and Aquila Tax 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 Aquila Tax. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Aquila Tax.
Diversification Opportunities for NYSE Composite and Aquila Tax
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and Aquila is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Aquila Tax Free Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquila Tax Free 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 Aquila Tax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aquila Tax Free has no effect on the direction of NYSE Composite i.e., NYSE Composite and Aquila Tax go up and down completely randomly.
Pair Corralation between NYSE Composite and Aquila Tax
Assuming the 90 days trading horizon NYSE Composite is expected to generate 4.24 times more return on investment than Aquila Tax. However, NYSE Composite is 4.24 times more volatile than Aquila Tax Free Fund. It trades about 0.08 of its potential returns per unit of risk. Aquila Tax Free Fund is currently generating about 0.06 per unit of risk. If you would invest 1,556,254 in NYSE Composite on September 3, 2024 and sell it today you would earn a total of 470,950 from holding NYSE Composite or generate 30.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Aquila Tax Free Fund
Performance |
| Timeline |
NYSE Composite and Aquila Tax Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Aquila Tax Free Fund
Pair trading matchups for Aquila Tax
Pair Trading with NYSE Composite and Aquila Tax
The main advantage of trading using opposite NYSE Composite and Aquila Tax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Aquila Tax 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 Aquila Tax will offset losses from the drop in Aquila Tax's long position.| NYSE Composite vs. Lindblad Expeditions Holdings | NYSE Composite vs. LB Foster | NYSE Composite vs. HUTCHMED DRC | NYSE Composite vs. Bridgford Foods |
| Aquila Tax vs. Lind Capital Partners | Aquila Tax vs. Touchstone Premium Yield | Aquila Tax vs. Ab Bond Inflation | Aquila Tax vs. Gmo High Yield |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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