Two Equities Correlation Analysis
Specify exactly 2 symbols:
STCM.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 Satcom Systems and NYSE Composite
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Satcom and NYSE is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Satcom Systems and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Satcom Systems 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 Satcom Systems 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 Satcom Systems i.e., Satcom Systems and NYSE Composite go up and down completely randomly.
Pair Corralation between Satcom Systems and NYSE Composite
Assuming the 90 days trading horizon Satcom Systems is expected to generate 16.19 times more return on investment than NYSE Composite. However, Satcom Systems is 16.19 times more volatile than NYSE Composite. It trades about 0.27 of its potential returns per unit of risk. NYSE Composite is currently generating about 0.36 per unit of risk. If you would invest 4,300 in Satcom Systems on December 29, 2023 and sell it today you would earn a total of 1,650 from holding Satcom Systems or generate 38.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 78.26% |
Values | Daily Returns |
Satcom Systems vs. NYSE Composite
Performance |
Timeline |
Satcom Systems and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
Satcom Systems
Pair trading matchups for Satcom Systems
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Satcom Systems and NYSE Composite
The main advantage of trading using opposite Satcom Systems and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Satcom Systems 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.Satcom Systems vs. Menif Financial Services | Satcom Systems vs. Israel Discount Bank | Satcom Systems vs. Migdal Insurance | Satcom Systems vs. Computer Direct |
NYSE Composite vs. SNDL Inc | NYSE Composite vs. Village Super Market | NYSE Composite vs. CF Industries Holdings | NYSE Composite vs. Albertsons Companies |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Stocks Directory Find actively traded stocks across global markets | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |