Two Equities Correlation Analysis
Specify exactly 2 symbols:
TEDE.TA
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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 Tedea Technological and NYSE Composite
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tedea and NYSE is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Tedea Technological Developmen and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Tedea Technological 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 Tedea Technological Development 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 Tedea Technological i.e., Tedea Technological and NYSE Composite go up and down completely randomly.
Pair Corralation between Tedea Technological and NYSE Composite
Assuming the 90 days trading horizon Tedea Technological Development is expected to under-perform the NYSE Composite. In addition to that, Tedea Technological is 4.45 times more volatile than NYSE Composite. It trades about -0.14 of its total potential returns per unit of risk. NYSE Composite is currently generating about -0.15 per unit of volatility. If you would invest 1,788,231 in NYSE Composite on January 16, 2024 and sell it today you would lose (37,538) from holding NYSE Composite or give up 2.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 85.0% |
| Values | Daily Returns |
Tedea Technological Developmen vs. NYSE Composite
Performance |
| Timeline |
Tedea Technological and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
Tedea Technological Development
Pair trading matchups for Tedea Technological
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Tedea Technological and NYSE Composite
The main advantage of trading using opposite Tedea Technological and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tedea Technological 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.| Tedea Technological vs. Teva Pharmaceutical Industries | Tedea Technological vs. Elbit Systems | Tedea Technological vs. Bezeq Israeli Telecommunication | Tedea Technological vs. ICL Israel Chemicals |
| NYSE Composite vs. CECO Environmental Corp | NYSE Composite vs. Avarone Metals | NYSE Composite vs. US Silica Holdings | NYSE Composite vs. Tandem Diabetes Care |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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