Correlation Between New York and Newmark
Can any of the company-specific risk be diversified away by investing in both New York and Newmark 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 New York and Newmark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New York City and Newmark Group, you can compare the effects of market volatilities on New York and Newmark 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 New York with a short position of Newmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of New York and Newmark.
Diversification Opportunities for New York and Newmark
Very good diversification
The 3 months correlation between New and Newmark is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding New York City and Newmark Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newmark Group and New York 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 New York City are associated (or correlated) with Newmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newmark Group has no effect on the direction of New York i.e., New York and Newmark go up and down completely randomly.
Pair Corralation between New York and Newmark
Considering the 90-day investment horizon New York City is expected to generate 1.23 times more return on investment than Newmark. However, New York is 1.23 times more volatile than Newmark Group. It trades about 0.16 of its potential returns per unit of risk. Newmark Group is currently generating about 0.12 per unit of risk. If you would invest 845.00 in New York City on October 23, 2024 and sell it today you would earn a total of 74.00 from holding New York City or generate 8.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
New York City vs. Newmark Group
Performance |
| Timeline |
| New York City |
| Newmark Group |
New York and Newmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New York and Newmark
The main advantage of trading using opposite New York and Newmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New York position performs unexpectedly, Newmark 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 Newmark will offset losses from the drop in Newmark's long position.| New York vs. Frp Holdings Ord | New York vs. Marcus Millichap | New York vs. Anywhere Real Estate | New York vs. FirstService Corp |
| Newmark vs. Jones Lang LaSalle | Newmark vs. CBRE Group Class | Newmark vs. Colliers International Group | Newmark vs. Marcus Millichap |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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