Correlation Between NYSE Composite and Uniper SE
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Uniper SE 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 Uniper SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Uniper SE, you can compare the effects of market volatilities on NYSE Composite and Uniper SE 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 Uniper SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Uniper SE.
Diversification Opportunities for NYSE Composite and Uniper SE
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and Uniper is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Uniper SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uniper SE 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 Uniper SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uniper SE has no effect on the direction of NYSE Composite i.e., NYSE Composite and Uniper SE go up and down completely randomly.
Pair Corralation between NYSE Composite and Uniper SE
Assuming the 90 days trading horizon NYSE Composite is expected to generate 6.18 times more return on investment than Uniper SE. However, NYSE Composite is 6.18 times more volatile than Uniper SE. It trades about 0.13 of its potential returns per unit of risk. Uniper SE is currently generating about -0.22 per unit of risk. If you would invest 1,757,639 in NYSE Composite on March 2, 2024 and sell it today you would earn a total of 27,597 from holding NYSE Composite or generate 1.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
NYSE Composite vs. Uniper SE
Performance |
Timeline |
NYSE Composite and Uniper SE Volatility Contrast
Predicted Return Density |
Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Uniper SE
Pair trading matchups for Uniper SE
Pair Trading with NYSE Composite and Uniper SE
The main advantage of trading using opposite NYSE Composite and Uniper SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Uniper SE 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 Uniper SE will offset losses from the drop in Uniper SE's long position.NYSE Composite vs. SEI Investments | NYSE Composite vs. ChampionX | NYSE Composite vs. Parker Hannifin | NYSE Composite vs. RBC Bearings Incorporated |
Uniper SE vs. NRG Energy | Uniper SE vs. TransAlta Corp | Uniper SE vs. Kenon Holdings | Uniper SE vs. Pampa Energia SA |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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