Correlation Between NYSE Composite and Wirecard
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Wirecard 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 Wirecard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Wirecard AG, you can compare the effects of market volatilities on NYSE Composite and Wirecard 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 Wirecard. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Wirecard.
Diversification Opportunities for NYSE Composite and Wirecard
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and Wirecard is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Wirecard AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wirecard AG 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 Wirecard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wirecard AG has no effect on the direction of NYSE Composite i.e., NYSE Composite and Wirecard go up and down completely randomly.
Pair Corralation between NYSE Composite and Wirecard
Assuming the 90 days trading horizon NYSE Composite is expected to generate 250.79 times less return on investment than Wirecard. But when comparing it to its historical volatility, NYSE Composite is 151.58 times less risky than Wirecard. It trades about 0.07 of its potential returns per unit of risk. Wirecard AG is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1.00 in Wirecard AG on September 23, 2024 and sell it today you would earn a total of 0.00 from holding Wirecard AG or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.22% |
| Values | Daily Returns |
NYSE Composite vs. Wirecard AG
Performance |
| Timeline |
NYSE Composite and Wirecard Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Wirecard AG
Pair trading matchups for Wirecard
Pair Trading with NYSE Composite and Wirecard
The main advantage of trading using opposite NYSE Composite and Wirecard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Wirecard 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 Wirecard will offset losses from the drop in Wirecard's long position.| NYSE Composite vs. BorgWarner | NYSE Composite vs. CarsalesCom Ltd ADR | NYSE Composite vs. Flexible Solutions International | NYSE Composite vs. Lucid Group |
| Wirecard vs. NextPlat Corp | Wirecard vs. Liquid Avatar Technologies | Wirecard vs. Waldencast Acquisition Corp | Wirecard vs. CXApp Inc |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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