Correlation Between NYSE Composite and 26442UAB0
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By analyzing existing cross correlation between NYSE Composite and DUKE ENERGY PROGRESS, you can compare the effects of market volatilities on NYSE Composite and 26442UAB0 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 26442UAB0. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and 26442UAB0.
Diversification Opportunities for NYSE Composite and 26442UAB0
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between NYSE and 26442UAB0 is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and DUKE ENERGY PROGRESS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DUKE ENERGY PROGRESS 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 26442UAB0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DUKE ENERGY PROGRESS has no effect on the direction of NYSE Composite i.e., NYSE Composite and 26442UAB0 go up and down completely randomly.
Pair Corralation between NYSE Composite and 26442UAB0
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.26 times more return on investment than 26442UAB0. However, NYSE Composite is 1.26 times more volatile than DUKE ENERGY PROGRESS. It trades about -0.25 of its potential returns per unit of risk. DUKE ENERGY PROGRESS is currently generating about -0.78 per unit of risk. If you would invest 2,000,626 in NYSE Composite on October 8, 2024 and sell it today you would lose (74,484) from holding NYSE Composite or give up 3.72% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 57.89% |
Values | Daily Returns |
NYSE Composite vs. DUKE ENERGY PROGRESS
Performance |
Timeline |
NYSE Composite and 26442UAB0 Volatility Contrast
Predicted Return Density |
Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
DUKE ENERGY PROGRESS
Pair trading matchups for 26442UAB0
Pair Trading with NYSE Composite and 26442UAB0
The main advantage of trading using opposite NYSE Composite and 26442UAB0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, 26442UAB0 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 26442UAB0 will offset losses from the drop in 26442UAB0's long position.NYSE Composite vs. Alvotech | NYSE Composite vs. IPG Photonics | NYSE Composite vs. Ultra Clean Holdings | NYSE Composite vs. Aperture Health |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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