Correlation Between NYSE Composite and Anteris Technologies

Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Anteris Technologies at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining NYSE Composite and Anteris Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NYSE Composite and Anteris Technologies, you can compare the effects of market volatilities on NYSE Composite and Anteris Technologies and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in NYSE Composite with a short position of Anteris Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Anteris Technologies.

Diversification Opportunities for NYSE Composite and Anteris Technologies

-0.52

Correlation Coefficient

NYSE Composite  Anteris Technologies

Excellent diversification

The 3 months correlation between NYSE and Anteris is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Anteris Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anteris Technologies and NYSE Composite 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 NYSE Composite are associated (or correlated) with Anteris Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anteris Technologies has no effect on the direction of NYSE Composite i.e., NYSE Composite and Anteris Technologies go up and down completely randomly.

Pair Corralation between NYSE Composite and Anteris Technologies

Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.11 times more return on investment than Anteris Technologies. However, NYSE Composite is 9.12 times less risky than Anteris Technologies. It trades about 0.16 of its potential returns per unit of risk. Anteris Technologies is currently generating about -0.07 per unit of risk. If you would invest  1,901,742  in NYSE Composite on September 3, 2024 and sell it today you would earn a total of  119,580  from holding NYSE Composite or generate 6.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

NYSE Composite  vs.  Anteris Technologies

Pair Trading with NYSE Composite and Anteris Technologies

The main advantage of trading using opposite NYSE Composite and Anteris Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Anteris Technologies 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 Anteris Technologies will offset losses from the drop in Anteris Technologies' long position.

The idea behind NYSE Composite and Anteris Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.