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 Corning Incorporated and NYSE Composite
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Corning and NYSE is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Corning Incorporated and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Corning Incorporated 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 Corning Incorporated 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 Corning Incorporated i.e., Corning Incorporated and NYSE Composite go up and down completely randomly.
Pair Corralation between Corning Incorporated and NYSE Composite
Considering the 90-day investment horizon Corning Incorporated is expected to under-perform the NYSE Composite. In addition to that, Corning Incorporated is 1.51 times more volatile than NYSE Composite. It trades about -0.12 of its total potential returns per unit of risk. NYSE Composite is currently generating about -0.11 per unit of volatility. If you would invest 1,807,715 in NYSE Composite on January 25, 2024 and sell it today you would lose (31,907) from holding NYSE Composite or give up 1.77% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Corning Incorporated vs. NYSE Composite
Performance |
Timeline |
Corning Incorporated and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
Corning Incorporated
Pair trading matchups for Corning Incorporated
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Corning Incorporated and NYSE Composite
The main advantage of trading using opposite Corning Incorporated and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corning Incorporated 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.Corning Incorporated vs. OSI Systems | Corning Incorporated vs. Fabrinet | Corning Incorporated vs. Jabil Circuit | Corning Incorporated vs. Vicor |
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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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