Correlation Between NYSE Composite and Veeco Instruments
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Veeco Instruments 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 Veeco Instruments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Veeco Instruments, you can compare the effects of market volatilities on NYSE Composite and Veeco Instruments 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 Veeco Instruments. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Veeco Instruments.
Diversification Opportunities for NYSE Composite and Veeco Instruments
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and Veeco is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Veeco Instruments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veeco Instruments 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 Veeco Instruments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veeco Instruments has no effect on the direction of NYSE Composite i.e., NYSE Composite and Veeco Instruments go up and down completely randomly.
Pair Corralation between NYSE Composite and Veeco Instruments
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.25 times more return on investment than Veeco Instruments. However, NYSE Composite is 4.01 times less risky than Veeco Instruments. It trades about 0.11 of its potential returns per unit of risk. Veeco Instruments is currently generating about -0.01 per unit of risk. If you would invest 1,663,938 in NYSE Composite on November 9, 2024 and sell it today you would earn a total of 351,820 from holding NYSE Composite or generate 21.14% 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. Veeco Instruments
Performance |
| Timeline |
NYSE Composite and Veeco Instruments Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Veeco Instruments
Pair trading matchups for Veeco Instruments
Pair Trading with NYSE Composite and Veeco Instruments
The main advantage of trading using opposite NYSE Composite and Veeco Instruments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Veeco Instruments 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 Veeco Instruments will offset losses from the drop in Veeco Instruments' long position.| NYSE Composite vs. Integrated Media Technology | NYSE Composite vs. Custom Truck One | NYSE Composite vs. Funko Inc | NYSE Composite vs. Multi Ways Holdings |
| Veeco Instruments vs. NVE Corporation | Veeco Instruments vs. Photronics | Veeco Instruments vs. Kulicke and Soffa | Veeco Instruments vs. Alvarium Tiedemann Holdings |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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