Two Equities Correlation Analysis
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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 Lineage Cell and NYSE Composite
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lineage and NYSE is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Lineage Cell Therapeutics and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Lineage Cell 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 Lineage Cell Therapeutics 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 Lineage Cell i.e., Lineage Cell and NYSE Composite go up and down completely randomly.
Pair Corralation between Lineage Cell and NYSE Composite
Assuming the 90 days trading horizon Lineage Cell is expected to generate 3.2 times less return on investment than NYSE Composite. In addition to that, Lineage Cell is 7.56 times more volatile than NYSE Composite. It trades about 0.01 of its total potential returns per unit of risk. NYSE Composite is currently generating about 0.19 per unit of volatility. If you would invest 1,494,601 in NYSE Composite on January 19, 2024 and sell it today you would earn a total of 244,208 from holding NYSE Composite or generate 16.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 82.93% |
Values | Daily Returns |
Lineage Cell Therapeutics vs. NYSE Composite
Performance |
Timeline |
Lineage Cell and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
Lineage Cell Therapeutics
Pair trading matchups for Lineage Cell
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Lineage Cell and NYSE Composite
The main advantage of trading using opposite Lineage Cell and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lineage Cell 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.Lineage Cell vs. Purple Biotech | Lineage Cell vs. BioLine RX | Lineage Cell vs. Clal Biotechnology Industries | Lineage Cell vs. Evogene |
NYSE Composite vs. Western Digital | NYSE Composite vs. Meta Data | NYSE Composite vs. Transphorm Technology | NYSE Composite vs. Playtika Holding 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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