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 Eni SPA and NYSE Composite
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eni and NYSE is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Eni SpA ADR and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Eni SPA 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 Eni SpA ADR 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 Eni SPA i.e., Eni SPA and NYSE Composite go up and down completely randomly.
Pair Corralation between Eni SPA and NYSE Composite
Taking into account the 90-day investment horizon Eni SPA is expected to generate 1.16 times less return on investment than NYSE Composite. In addition to that, Eni SPA is 2.15 times more volatile than NYSE Composite. It trades about 0.15 of its total potential returns per unit of risk. NYSE Composite is currently generating about 0.36 per unit of volatility. If you would invest 1,759,832 in NYSE Composite on December 29, 2023 and sell it today you would earn a total of 71,435 from holding NYSE Composite or generate 4.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Eni SpA ADR vs. NYSE Composite
Performance |
Timeline |
Eni SPA and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
Eni SpA ADR
Pair trading matchups for Eni SPA
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Eni SPA and NYSE Composite
The main advantage of trading using opposite Eni SPA and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eni SPA 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.Eni SPA vs. Timken Company | Eni SPA vs. Toro Co | Eni SPA vs. United Guardian | Eni SPA vs. Catalyst Pharmaceuticals |
NYSE Composite vs. SNDL Inc | NYSE Composite vs. Village Super Market | NYSE Composite vs. CF Industries Holdings | NYSE Composite vs. Albertsons Companies |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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