Correlation Between NYSE Composite and Crossmark Steward
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Crossmark Steward 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 Crossmark Steward into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Crossmark Steward Equity, you can compare the effects of market volatilities on NYSE Composite and Crossmark Steward 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 Crossmark Steward. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Crossmark Steward.
Diversification Opportunities for NYSE Composite and Crossmark Steward
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and Crossmark is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Crossmark Steward Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crossmark Steward Equity 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 Crossmark Steward. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crossmark Steward Equity has no effect on the direction of NYSE Composite i.e., NYSE Composite and Crossmark Steward go up and down completely randomly.
Pair Corralation between NYSE Composite and Crossmark Steward
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.91 times more return on investment than Crossmark Steward. However, NYSE Composite is 1.91 times more volatile than Crossmark Steward Equity. It trades about 0.12 of its potential returns per unit of risk. Crossmark Steward Equity is currently generating about 0.04 per unit of risk. If you would invest 1,837,974 in NYSE Composite on July 11, 2024 and sell it today you would earn a total of 116,735 from holding NYSE Composite or generate 6.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
NYSE Composite vs. Crossmark Steward Equity
Performance |
Timeline |
NYSE Composite and Crossmark Steward Volatility Contrast
Predicted Return Density |
Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Crossmark Steward Equity
Pair trading matchups for Crossmark Steward
Pair Trading with NYSE Composite and Crossmark Steward
The main advantage of trading using opposite NYSE Composite and Crossmark Steward positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Crossmark Steward 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 Crossmark Steward will offset losses from the drop in Crossmark Steward's long position.NYSE Composite vs. Iridium Communications | NYSE Composite vs. ScanSource | NYSE Composite vs. Rumble Inc | NYSE Composite vs. Infosys Ltd ADR |
Crossmark Steward vs. HUMANA INC | Crossmark Steward vs. Aquagold International | Crossmark Steward vs. Barloworld Ltd ADR | Crossmark Steward vs. Thrivent High Yield |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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