Two Equities Correlation Analysis
Specify exactly 2 symbols:
DAC.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 Danish Aerospace and NYSE Composite
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Danish and NYSE is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Danish Aerospace and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Danish Aerospace 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 Danish Aerospace 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 Danish Aerospace i.e., Danish Aerospace and NYSE Composite go up and down completely randomly.
Pair Corralation between Danish Aerospace and NYSE Composite
Assuming the 90 days trading horizon Danish Aerospace is expected to generate 8.29 times more return on investment than NYSE Composite. However, Danish Aerospace is 8.29 times more volatile than NYSE Composite. It trades about -0.01 of its potential returns per unit of risk. NYSE Composite is currently generating about -0.31 per unit of risk. If you would invest 330.00 in Danish Aerospace on January 20, 2024 and sell it today you would lose (10.00) from holding Danish Aerospace or give up 3.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Danish Aerospace vs. NYSE Composite
Performance |
| Timeline |
Danish Aerospace and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
Danish Aerospace
Pair trading matchups for Danish Aerospace
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Danish Aerospace and NYSE Composite
The main advantage of trading using opposite Danish Aerospace and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Danish Aerospace 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.| Danish Aerospace vs. BioPorto | Danish Aerospace vs. cBrain AS | Danish Aerospace vs. Orphazyme AS | Danish Aerospace vs. North Media AS |
| NYSE Composite vs. Dine Brands Global | NYSE Composite vs. BJs Restaurants | NYSE Composite vs. Chipotle Mexican Grill | NYSE Composite vs. Shake Shack |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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