Two Equities Correlation Analysis
Specify exactly 2 symbols:
SCOP.TA
Add Two Equities
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 Scope Metals and NYSE Composite
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Scope and NYSE is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Scope Metals Group and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Scope Metals 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 Scope Metals Group 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 Scope Metals i.e., Scope Metals and NYSE Composite go up and down completely randomly.
Pair Corralation between Scope Metals and NYSE Composite
Assuming the 90 days trading horizon Scope Metals Group is expected to under-perform the NYSE Composite. In addition to that, Scope Metals is 2.18 times more volatile than NYSE Composite. It trades about -0.02 of its total potential returns per unit of risk. NYSE Composite is currently generating about 0.03 per unit of volatility. If you would invest 1,653,420 in NYSE Composite on December 30, 2023 and sell it today you would earn a total of 177,847 from holding NYSE Composite or generate 10.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 78.95% |
Values | Daily Returns |
Scope Metals Group vs. NYSE Composite
Performance |
Timeline |
Scope Metals and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
Scope Metals Group
Pair trading matchups for Scope Metals
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Scope Metals and NYSE Composite
The main advantage of trading using opposite Scope Metals and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scope Metals 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.Scope Metals vs. YD More Investments | Scope Metals vs. Creative Media Community | Scope Metals vs. Adgar Investments And | Scope Metals vs. Bezeq Israeli Telecommunication |
NYSE Composite vs. Mediag3 | NYSE Composite vs. Douglas Emmett | NYSE Composite vs. United Homes Group | NYSE Composite vs. Reservoir Media |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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