Two Equities Correlation Analysis
Specify exactly 2 symbols:
MMIGAA.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 Multi Manager and NYSE Composite
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Multi and NYSE is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Multi Manager Invest and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Multi Manager 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 Multi Manager 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 Multi Manager i.e., Multi Manager and NYSE Composite go up and down completely randomly.
Pair Corralation between Multi Manager and NYSE Composite
Assuming the 90 days trading horizon Multi Manager Invest is expected to under-perform the NYSE Composite. But the stock apears to be less risky and, when comparing its historical volatility, Multi Manager Invest is 1.13 times less risky than NYSE Composite. The stock trades about -0.19 of its potential returns per unit of risk. The NYSE Composite is currently generating about -0.11 of returns per unit of risk over similar time horizon. 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 | Strong |
| Accuracy | 90.91% |
| Values | Daily Returns |
Multi Manager Invest vs. NYSE Composite
Performance |
| Timeline |
Multi Manager and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
Multi Manager Invest
Pair trading matchups for Multi Manager
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Multi Manager and NYSE Composite
The main advantage of trading using opposite Multi Manager and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Manager 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.| Multi Manager vs. Novo Nordisk AS | Multi Manager vs. Nordea Bank Abp | Multi Manager vs. DSV Panalpina AS | Multi Manager vs. AP Mller |
| NYSE Composite vs. Aduro Clean Technologies | NYSE Composite vs. Transphorm Technology | NYSE Composite vs. Advanced Micro Devices | NYSE Composite vs. IPG Photonics |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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