Two Equities Correlation Analysis
Specify exactly 2 symbols:
NORTHM.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 North Media and NYSE Composite
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between North and NYSE is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding North Media AS and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and North Media 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 North Media 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 North Media i.e., North Media and NYSE Composite go up and down completely randomly.
Pair Corralation between North Media and NYSE Composite
Assuming the 90 days trading horizon North Media AS is expected to under-perform the NYSE Composite. In addition to that, North Media is 2.94 times more volatile than NYSE Composite. It trades about -0.09 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 1,805,919 in NYSE Composite on January 26, 2024 and sell it today you would lose (30,111) from holding NYSE Composite or give up 1.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
North Media AS vs. NYSE Composite
Performance |
| Timeline |
North Media and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
North Media AS
Pair trading matchups for North Media
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with North Media and NYSE Composite
The main advantage of trading using opposite North Media and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Media 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.| North Media vs. Matas AS | North Media vs. cBrain AS | North Media vs. Alm Brand | North Media vs. Netcompany Group AS |
| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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