Two Equities Correlation Analysis
Specify exactly 2 symbols:
NICE.TA
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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 Nice and NYSE Composite
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nice and NYSE is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Nice and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Nice 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 Nice 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 Nice i.e., Nice and NYSE Composite go up and down completely randomly.
Pair Corralation between Nice and NYSE Composite
Assuming the 90 days trading horizon Nice is expected to generate 3.5 times more return on investment than NYSE Composite. However, Nice is 3.5 times more volatile than NYSE Composite. It trades about 0.01 of its potential returns per unit of risk. NYSE Composite is currently generating about -0.15 per unit of risk. If you would invest 8,734,000 in Nice on January 17, 2024 and sell it today you would earn a total of 11,000 from holding Nice or generate 0.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 85.0% |
| Values | Daily Returns |
Nice vs. NYSE Composite
Performance |
| Timeline |
Nice and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
Nice
Pair trading matchups for Nice
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Nice and NYSE Composite
The main advantage of trading using opposite Nice and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nice 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.| Nice vs. Teva Pharmaceutical Industries | Nice vs. Elbit Systems | Nice vs. Bezeq Israeli Telecommunication | Nice vs. ICL Israel Chemicals |
| NYSE Composite vs. Getty Images Holdings | NYSE Composite vs. Wingstop | NYSE Composite vs. Cardinal Health | NYSE Composite vs. Radcom |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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