Two Equities Correlation Analysis
Specify exactly 2 symbols:
PNDORA.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 Pandora AS and NYSE Composite
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pandora and NYSE is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Pandora AS and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Pandora AS 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 Pandora 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 Pandora AS i.e., Pandora AS and NYSE Composite go up and down completely randomly.
Pair Corralation between Pandora AS and NYSE Composite
Assuming the 90 days trading horizon Pandora AS is expected to generate 2.33 times more return on investment than NYSE Composite. However, Pandora AS is 2.33 times more volatile than NYSE Composite. It trades about 0.06 of its potential returns per unit of risk. NYSE Composite is currently generating about 0.03 per unit of risk. If you would invest 61,264 in Pandora AS on January 19, 2024 and sell it today you would earn a total of 46,586 from holding Pandora AS or generate 76.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
Pandora AS vs. NYSE Composite
Performance |
| Timeline |
Pandora AS and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
Pandora AS
Pair trading matchups for Pandora AS
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Pandora AS and NYSE Composite
The main advantage of trading using opposite Pandora AS and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pandora AS 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.| Pandora AS vs. Ralph Lauren Corp | Pandora AS vs. Tapestry | Pandora AS vs. PVH Corp | Pandora AS vs. Levi Strauss Co |
| NYSE Composite vs. Western Digital | NYSE Composite vs. Meta Data | NYSE Composite vs. Transphorm Technology | NYSE Composite vs. Playtika Holding Corp |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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