Correlation Between NYSE Composite and Graphex Group
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Graphex Group 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 Graphex Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Graphex Group Limited, you can compare the effects of market volatilities on NYSE Composite and Graphex Group 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 Graphex Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Graphex Group.
Diversification Opportunities for NYSE Composite and Graphex Group
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NYSE and Graphex is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Graphex Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphex Group Limited 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 Graphex Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphex Group Limited has no effect on the direction of NYSE Composite i.e., NYSE Composite and Graphex Group go up and down completely randomly.
Pair Corralation between NYSE Composite and Graphex Group
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.08 times more return on investment than Graphex Group. However, NYSE Composite is 12.39 times less risky than Graphex Group. It trades about 0.15 of its potential returns per unit of risk. Graphex Group Limited is currently generating about -0.26 per unit of risk. If you would invest 1,880,224 in NYSE Composite on June 21, 2024 and sell it today you would earn a total of 39,332 from holding NYSE Composite or generate 2.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
NYSE Composite vs. Graphex Group Limited
Performance |
Timeline |
NYSE Composite and Graphex Group Volatility Contrast
Predicted Return Density |
Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Graphex Group Limited
Pair trading matchups for Graphex Group
Pair Trading with NYSE Composite and Graphex Group
The main advantage of trading using opposite NYSE Composite and Graphex Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Graphex Group 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 Graphex Group will offset losses from the drop in Graphex Group's long position.NYSE Composite vs. Adient PLC | NYSE Composite vs. PACCAR Inc | NYSE Composite vs. Marine Products | NYSE Composite vs. Virco Manufacturing |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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