Two Equities Correlation Analysis
Specify exactly 2 symbols:
BIV75.CO
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This model provides you with a quick lookup of cross correlation between two equities. Please specify two instruments to run the correlation.
Diversification Opportunities for BankInvest Optima and NYSE Composite
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BankInvest and NYSE is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding BankInvest Optima 75 and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and BankInvest Optima 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 BankInvest Optima 75 are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of BankInvest Optima i.e., BankInvest Optima and NYSE Composite go up and down completely randomly.
Pair Corralation between BankInvest Optima and NYSE Composite
Assuming the 90 days trading horizon BankInvest Optima 75 is expected to generate 0.73 times more return on investment than NYSE Composite. However, BankInvest Optima 75 is 1.36 times less risky than NYSE Composite. It trades about -0.14 of its potential returns per unit of risk. NYSE Composite is currently generating about -0.11 per unit of risk. If you would invest 11,455 in BankInvest Optima 75 on January 26, 2024 and sell it today you would lose (165.00) from holding BankInvest Optima 75 or give up 1.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 90.48% |
| Values | Daily Returns |
BankInvest Optima 75 vs. NYSE Composite
Performance |
| Timeline |
BankInvest Optima and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
BankInvest Optima 75
Pair trading matchups for BankInvest Optima
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with BankInvest Optima and NYSE Composite
The main advantage of trading using opposite BankInvest Optima and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankInvest Optima position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.| BankInvest Optima vs. Novo Nordisk AS | BankInvest Optima vs. Nordea Bank Abp | BankInvest Optima vs. DSV Panalpina AS | BankInvest Optima vs. AP Mller |
| NYSE Composite vs. Aduro Clean Technologies | NYSE Composite vs. Transphorm Technology | NYSE Composite vs. Advanced Micro Devices | NYSE Composite vs. IPG Photonics |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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