Correlation Between 70082LAB3 and New York
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By analyzing existing cross correlation between US70082LAB36 and New York Mortgage, you can compare the effects of market volatilities on 70082LAB3 and New York 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 70082LAB3 with a short position of New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of 70082LAB3 and New York.
Diversification Opportunities for 70082LAB3 and New York
Poor diversification
The 3 months correlation between 70082LAB3 and New is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding US70082LAB36 and New York Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York Mortgage and 70082LAB3 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 US70082LAB36 are associated (or correlated) with New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York Mortgage has no effect on the direction of 70082LAB3 i.e., 70082LAB3 and New York go up and down completely randomly.
Pair Corralation between 70082LAB3 and New York
Assuming the 90 days trading horizon US70082LAB36 is expected to under-perform the New York. In addition to that, 70082LAB3 is 6.51 times more volatile than New York Mortgage. It trades about -0.24 of its total potential returns per unit of risk. New York Mortgage is currently generating about 0.12 per unit of volatility. If you would invest 2,479 in New York Mortgage on August 26, 2024 and sell it today you would earn a total of 18.00 from holding New York Mortgage or generate 0.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 50.0% |
| Values | Daily Returns |
US70082LAB36 vs. New York Mortgage
Performance |
| Timeline |
| US70082LAB36 |
| New York Mortgage |
70082LAB3 and New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 70082LAB3 and New York
The main advantage of trading using opposite 70082LAB3 and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 70082LAB3 position performs unexpectedly, New York 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 New York will offset losses from the drop in New York's long position.| 70082LAB3 vs. NL Industries | 70082LAB3 vs. Burlington Stores | 70082LAB3 vs. Victorias Secret Co | 70082LAB3 vs. Steven Madden |
| New York vs. New York Mortgage | New York vs. AGNC Investment Corp | New York vs. Chimera Investment | New York vs. AGNC Investment Corp |
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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