Two Equities Correlation Analysis
Specify exactly 2 symbols:
DNA.TA
Add Two Equities
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 DNA Biomed and NYSE Composite
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DNA and NYSE is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding DNA Biomed Solns and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and DNA Biomed 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 DNA Biomed Solns 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 DNA Biomed i.e., DNA Biomed and NYSE Composite go up and down completely randomly.
Pair Corralation between DNA Biomed and NYSE Composite
Assuming the 90 days trading horizon DNA Biomed Solns is expected to generate 8.76 times more return on investment than NYSE Composite. However, DNA Biomed is 8.76 times more volatile than NYSE Composite. It trades about 0.17 of its potential returns per unit of risk. NYSE Composite is currently generating about -0.1 per unit of risk. If you would invest 7,670 in DNA Biomed Solns on January 25, 2024 and sell it today you would earn a total of 1,210 from holding DNA Biomed Solns or generate 15.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 80.95% |
| Values | Daily Returns |
DNA Biomed Solns vs. NYSE Composite
Performance |
| Timeline |
DNA Biomed and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
DNA Biomed Solns
Pair trading matchups for DNA Biomed
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with DNA Biomed and NYSE Composite
The main advantage of trading using opposite DNA Biomed and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DNA Biomed 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.The idea behind DNA Biomed Solns and NYSE Composite pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| NYSE Composite vs. The Wendys Co | NYSE Composite vs. Dine Brands Global | NYSE Composite vs. BJs Restaurants | NYSE Composite vs. Rave Restaurant Group |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |