Correlation Between Saturna Sustainable and NYSE Composite
Can any of the company-specific risk be diversified away by investing in both Saturna Sustainable 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 Saturna Sustainable and NYSE Composite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saturna Sustainable Equity and NYSE Composite, you can compare the effects of market volatilities on Saturna Sustainable 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 Saturna Sustainable with a short position of NYSE Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saturna Sustainable and NYSE Composite.
Diversification Opportunities for Saturna Sustainable and NYSE Composite
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Saturna and NYSE is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Saturna Sustainable Equity and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Saturna Sustainable 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 Saturna Sustainable Equity 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 Saturna Sustainable i.e., Saturna Sustainable and NYSE Composite go up and down completely randomly.
Pair Corralation between Saturna Sustainable and NYSE Composite
Assuming the 90 days horizon Saturna Sustainable Equity is expected to generate 1.01 times more return on investment than NYSE Composite. However, Saturna Sustainable is 1.01 times more volatile than NYSE Composite. It trades about 0.0 of its potential returns per unit of risk. NYSE Composite is currently generating about -0.06 per unit of risk. If you would invest 1,832 in Saturna Sustainable Equity on February 4, 2024 and sell it today you would lose (2.00) from holding Saturna Sustainable Equity or give up 0.11% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Saturna Sustainable Equity vs. NYSE Composite
Performance |
Timeline |
Saturna Sustainable and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
Saturna Sustainable Equity
Pair trading matchups for Saturna Sustainable
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Saturna Sustainable and NYSE Composite
The main advantage of trading using opposite Saturna Sustainable and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saturna Sustainable 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.Saturna Sustainable vs. Canoe Eit Income | Saturna Sustainable vs. Nuveen Limited Term | Saturna Sustainable vs. Cohen And Steers | Saturna Sustainable vs. Blackrock Alternative Capital |
NYSE Composite vs. Gerdau SA ADR | NYSE Composite vs. Transphorm Technology | NYSE Composite vs. KeyCorp | NYSE Composite vs. Chester Mining |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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