Correlation Between NYSE Composite and Flushing Financial
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Flushing Financial 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 Flushing Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Flushing Financial, you can compare the effects of market volatilities on NYSE Composite and Flushing Financial 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 Flushing Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Flushing Financial.
Diversification Opportunities for NYSE Composite and Flushing Financial
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and Flushing is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Flushing Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flushing Financial 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 Flushing Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flushing Financial has no effect on the direction of NYSE Composite i.e., NYSE Composite and Flushing Financial go up and down completely randomly.
Pair Corralation between NYSE Composite and Flushing Financial
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.24 times more return on investment than Flushing Financial. However, NYSE Composite is 4.1 times less risky than Flushing Financial. It trades about -0.06 of its potential returns per unit of risk. Flushing Financial is currently generating about -0.04 per unit of risk. If you would invest 1,798,249 in NYSE Composite on February 4, 2024 and sell it today you would lose (18,460) from holding NYSE Composite or give up 1.03% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.65% |
Values | Daily Returns |
NYSE Composite vs. Flushing Financial
Performance |
Timeline |
NYSE Composite and Flushing Financial Volatility Contrast
Predicted Return Density |
Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Flushing Financial
Pair trading matchups for Flushing Financial
Pair Trading with NYSE Composite and Flushing Financial
The main advantage of trading using opposite NYSE Composite and Flushing Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Flushing Financial 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 Flushing Financial will offset losses from the drop in Flushing Financial's long position.NYSE Composite vs. Gerdau SA ADR | NYSE Composite vs. Transphorm Technology | NYSE Composite vs. KeyCorp | NYSE Composite vs. Chester Mining |
Flushing Financial vs. Axos Financial | Flushing Financial vs. KB Financial Group | Flushing Financial vs. Nu Holdings | Flushing Financial vs. Woori Financial Group |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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