Correlation Between Philly Shipyard and NYSE Composite
Can any of the company-specific risk be diversified away by investing in both Philly Shipyard and NYSE Composite 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 Philly Shipyard and NYSE Composite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Philly Shipyard ASA and NYSE Composite, you can compare the effects of market volatilities on Philly Shipyard and NYSE Composite 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 Philly Shipyard with a short position of NYSE Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Philly Shipyard and NYSE Composite.
Diversification Opportunities for Philly Shipyard and NYSE Composite
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Philly and NYSE is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Philly Shipyard ASA and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Philly Shipyard 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 Philly Shipyard ASA 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 Philly Shipyard i.e., Philly Shipyard and NYSE Composite go up and down completely randomly.
Pair Corralation between Philly Shipyard and NYSE Composite
Assuming the 90 days trading horizon Philly Shipyard ASA is expected to generate 3.89 times more return on investment than NYSE Composite. However, Philly Shipyard is 3.89 times more volatile than NYSE Composite. It trades about 0.16 of its potential returns per unit of risk. NYSE Composite is currently generating about -0.07 per unit of risk. If you would invest 3,650 in Philly Shipyard ASA on February 7, 2024 and sell it today you would earn a total of 300.00 from holding Philly Shipyard ASA or generate 8.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 90.91% |
Values | Daily Returns |
Philly Shipyard ASA vs. NYSE Composite
Performance |
Timeline |
Philly Shipyard and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
Philly Shipyard ASA
Pair trading matchups for Philly Shipyard
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Philly Shipyard and NYSE Composite
The main advantage of trading using opposite Philly Shipyard and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Philly Shipyard 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.Philly Shipyard vs. Skue Sparebank | Philly Shipyard vs. Napatech AS | Philly Shipyard vs. Aqua Bio Technology | Philly Shipyard vs. Jaeren Sparebank |
NYSE Composite vs. ServiceNow | NYSE Composite vs. AMCON Distributing | NYSE Composite vs. National CineMedia | NYSE Composite vs. BOS Better Online |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |