Two Equities Correlation Analysis
Specify exactly 2 symbols:
KLEE-B.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 Brd Klee and NYSE Composite
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Brd and NYSE is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Brd Klee AS and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Brd Klee 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 Brd Klee AS 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 Brd Klee i.e., Brd Klee and NYSE Composite go up and down completely randomly.
Pair Corralation between Brd Klee and NYSE Composite
Assuming the 90 days trading horizon Brd Klee AS is expected to generate 5.18 times more return on investment than NYSE Composite. However, Brd Klee is 5.18 times more volatile than NYSE Composite. It trades about 0.09 of its potential returns per unit of risk. NYSE Composite is currently generating about 0.1 per unit of risk. If you would invest 376,000 in Brd Klee AS on January 20, 2024 and sell it today you would earn a total of 62,000 from holding Brd Klee AS or generate 16.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
Brd Klee AS vs. NYSE Composite
Performance |
| Timeline |
Brd Klee and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
Brd Klee AS
Pair trading matchups for Brd Klee
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Brd Klee and NYSE Composite
The main advantage of trading using opposite Brd Klee and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brd Klee 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.| Brd Klee vs. RIAS AS | Brd Klee vs. Investeringsselskabet Luxor AS | Brd Klee vs. Glunz Jensen | Brd Klee vs. SKAKO 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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