Correlation Between New York and Oshaughnessy Market
Can any of the company-specific risk be diversified away by investing in both New York and Oshaughnessy Market 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 Oshaughnessy Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New York Tax Free and Oshaughnessy Market Leaders, you can compare the effects of market volatilities on New York and Oshaughnessy Market 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 Oshaughnessy Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of New York and Oshaughnessy Market.
Diversification Opportunities for New York and Oshaughnessy Market
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between New and Oshaughnessy is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding New York Tax Free and Oshaughnessy Market Leaders in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oshaughnessy Market 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 Tax Free are associated (or correlated) with Oshaughnessy Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oshaughnessy Market has no effect on the direction of New York i.e., New York and Oshaughnessy Market go up and down completely randomly.
Pair Corralation between New York and Oshaughnessy Market
Assuming the 90 days horizon New York Tax Free is expected to generate 0.11 times more return on investment than Oshaughnessy Market. However, New York Tax Free is 8.97 times less risky than Oshaughnessy Market. It trades about -0.38 of its potential returns per unit of risk. Oshaughnessy Market Leaders is currently generating about -0.29 per unit of risk. If you would invest 1,103 in New York Tax Free on October 9, 2024 and sell it today you would lose (25.00) from holding New York Tax Free or give up 2.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
New York Tax Free vs. Oshaughnessy Market Leaders
Performance |
| Timeline |
| New York Tax |
| Oshaughnessy Market |
New York and Oshaughnessy Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New York and Oshaughnessy Market
The main advantage of trading using opposite New York and Oshaughnessy Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New York position performs unexpectedly, Oshaughnessy Market 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 Oshaughnessy Market will offset losses from the drop in Oshaughnessy Market's long position.| New York vs. New Jersey Tax Free | New York vs. T Rowe Price | New York vs. Virginia Tax Free Bond | New York vs. California Tax Free Bond |
| Oshaughnessy Market vs. Vanguard 500 Index | Oshaughnessy Market vs. Alger Smidcap Focus | Oshaughnessy Market vs. Vanguard Growth Index | Oshaughnessy Market vs. Vanguard Balanced Index |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |