Two Equities Correlation Analysis
Specify exactly 2 symbols:
SRIGAU.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 StockRate Invest and NYSE Composite
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between StockRate and NYSE is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding StockRate Invest and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and StockRate Invest 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 StockRate Invest 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 StockRate Invest i.e., StockRate Invest and NYSE Composite go up and down completely randomly.
Pair Corralation between StockRate Invest and NYSE Composite
Assuming the 90 days trading horizon StockRate Invest is expected to under-perform the NYSE Composite. But the stock apears to be less risky and, when comparing its historical volatility, StockRate Invest is 1.45 times less risky than NYSE Composite. The stock trades about -0.44 of its potential returns per unit of risk. The NYSE Composite is currently generating about -0.23 of returns per unit of risk over similar time horizon. If you would invest 1,797,579 in NYSE Composite on January 19, 2024 and sell it today you would lose (58,770) from holding NYSE Composite or give up 3.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
StockRate Invest vs. NYSE Composite
Performance |
| Timeline |
StockRate Invest and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
StockRate Invest
Pair trading matchups for StockRate Invest
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with StockRate Invest and NYSE Composite
The main advantage of trading using opposite StockRate Invest and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if StockRate Invest 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.| StockRate Invest vs. Novo Nordisk AS | StockRate Invest vs. Nordea Bank Abp | StockRate Invest vs. DSV Panalpina AS | StockRate Invest vs. AP Mller |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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