Two Equities Correlation Analysis
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PEG
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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 Public Service and NYSE Composite
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Public and NYSE is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Public Service Enterprise and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Public Service 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 Public Service Enterprise 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 Public Service i.e., Public Service and NYSE Composite go up and down completely randomly.
Pair Corralation between Public Service and NYSE Composite
Considering the 90-day investment horizon Public Service is expected to generate 1.38 times less return on investment than NYSE Composite. In addition to that, Public Service is 1.63 times more volatile than NYSE Composite. It trades about 0.04 of its total potential returns per unit of risk. NYSE Composite is currently generating about 0.08 per unit of volatility. If you would invest 1,522,858 in NYSE Composite on January 21, 2024 and sell it today you would earn a total of 223,019 from holding NYSE Composite or generate 14.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
Public Service Enterprise vs. NYSE Composite
Performance |
| Timeline |
Public Service and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
Public Service Enterprise
Pair trading matchups for Public Service
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Public Service and NYSE Composite
The main advantage of trading using opposite Public Service and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Public Service 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.| Public Service vs. American Electric Power | Public Service vs. Nextera Energy | Public Service vs. Aquagold International | Public Service vs. Morningstar Unconstrained Allocation |
| NYSE Composite vs. BK Technologies | NYSE Composite vs. Ryanair Holdings PLC | NYSE Composite vs. Nok Airlines Public | NYSE Composite vs. FormFactor |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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