Two Equities Correlation Analysis
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POEIX
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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 Origin Emerging and NYSE Composite
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Origin and NYSE is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Origin Emerging Markets and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Origin Emerging 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 Origin Emerging Markets 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 Origin Emerging i.e., Origin Emerging and NYSE Composite go up and down completely randomly.
Pair Corralation between Origin Emerging and NYSE Composite
Assuming the 90 days horizon Origin Emerging Markets is expected to generate 1.08 times more return on investment than NYSE Composite. However, Origin Emerging is 1.08 times more volatile than NYSE Composite. It trades about 0.08 of its potential returns per unit of risk. NYSE Composite is currently generating about 0.07 per unit of risk. If you would invest 798.00 in Origin Emerging Markets on January 24, 2024 and sell it today you would earn a total of 216.00 from holding Origin Emerging Markets or generate 27.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Emerging Markets vs. NYSE Composite
Performance |
| Timeline |
Origin Emerging and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
Origin Emerging Markets
Pair trading matchups for Origin Emerging
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Origin Emerging and NYSE Composite
The main advantage of trading using opposite Origin Emerging and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Emerging 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.| Origin Emerging vs. Strategic Asset Management | Origin Emerging vs. Strategic Asset Management | Origin Emerging vs. Strategic Asset Management | Origin Emerging vs. Strategic Asset Management |
| NYSE Composite vs. The Wendys Co | NYSE Composite vs. Dine Brands Global | NYSE Composite vs. BJs Restaurants | NYSE Composite vs. Rave Restaurant Group |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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