Two Equities Correlation Analysis
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NOLVX
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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 Northern Large and NYSE Composite
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Northern and NYSE is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Northern Large Cap and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Northern Large 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 Northern Large Cap 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 Northern Large i.e., Northern Large and NYSE Composite go up and down completely randomly.
Pair Corralation between Northern Large and NYSE Composite
Assuming the 90 days horizon Northern Large Cap is expected to generate 1.01 times more return on investment than NYSE Composite. However, Northern Large is 1.01 times more volatile than NYSE Composite. It trades about 0.03 of its potential returns per unit of risk. NYSE Composite is currently generating about 0.03 per unit of risk. If you would invest 1,792 in Northern Large Cap on January 17, 2024 and sell it today you would earn a total of 243.00 from holding Northern Large Cap or generate 13.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northern Large Cap vs. NYSE Composite
Performance |
| Timeline |
Northern Large and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
Northern Large Cap
Pair trading matchups for Northern Large
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Northern Large and NYSE Composite
The main advantage of trading using opposite Northern Large and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern Large 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.| Northern Large vs. Northern Bond Index | Northern Large vs. Northern E Bond | Northern Large vs. Northern Arizona Tax Exempt | Northern Large vs. Northern Emerging Markets |
| NYSE Composite vs. Getty Images Holdings | NYSE Composite vs. Wingstop | NYSE Composite vs. Cardinal Health | NYSE Composite vs. Radcom |
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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