Correlation Between NYSE Composite and XBTF
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and XBTF 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 XBTF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and XBTF, you can compare the effects of market volatilities on NYSE Composite and XBTF 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 XBTF. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and XBTF.
Diversification Opportunities for NYSE Composite and XBTF
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NYSE and XBTF is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and XBTF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XBTF 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 XBTF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XBTF has no effect on the direction of NYSE Composite i.e., NYSE Composite and XBTF go up and down completely randomly.
Pair Corralation between NYSE Composite and XBTF
If you would invest 1,679,840 in NYSE Composite on September 14, 2024 and sell it today you would earn a total of 297,069 from holding NYSE Composite or generate 17.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
NYSE Composite vs. XBTF
Performance |
| Timeline |
NYSE Composite and XBTF Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
XBTF
Pair trading matchups for XBTF
Pair Trading with NYSE Composite and XBTF
The main advantage of trading using opposite NYSE Composite and XBTF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, XBTF 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 XBTF will offset losses from the drop in XBTF's long position.| NYSE Composite vs. Air Products and | NYSE Composite vs. Allient | NYSE Composite vs. Ecovyst | NYSE Composite vs. CTS Corporation |
| XBTF vs. Grayscale Bitcoin Trust | XBTF vs. Siren Nasdaq NexGen | XBTF vs. Bitwise Crypto Industry | XBTF vs. Grayscale Bitcoin Mini |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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