Two Equities Correlation Analysis
Specify exactly 2 symbols:
MAJGO.CO
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 Maj Invest and NYSE Composite
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Maj and NYSE is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Maj Invest and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Maj Invest 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 Maj Invest 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 Maj Invest i.e., Maj Invest and NYSE Composite go up and down completely randomly.
Pair Corralation between Maj Invest and NYSE Composite
Assuming the 90 days trading horizon Maj Invest is expected to generate 9.97 times less return on investment than NYSE Composite. But when comparing it to its historical volatility, Maj Invest is 2.81 times less risky than NYSE Composite. It trades about 0.01 of its potential returns per unit of risk. NYSE Composite is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,565,261 in NYSE Composite on January 25, 2024 and sell it today you would earn a total of 214,015 from holding NYSE Composite or generate 13.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Maj Invest vs. NYSE Composite
Performance |
| Timeline |
Maj Invest and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
Maj Invest
Pair trading matchups for Maj Invest
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Maj Invest and NYSE Composite
The main advantage of trading using opposite Maj Invest and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maj Invest 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.| Maj Invest vs. Novo Nordisk AS | Maj Invest vs. Nordea Bank Abp | Maj Invest vs. DSV Panalpina AS | Maj Invest vs. AP Mller |
| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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