Correlation Between NYSE Composite and SHERWIN
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By analyzing existing cross correlation between NYSE Composite and SHERWIN WILLIAMS 455 percent, you can compare the effects of market volatilities on NYSE Composite and SHERWIN 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 SHERWIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and SHERWIN.
Diversification Opportunities for NYSE Composite and SHERWIN
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NYSE and SHERWIN is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and SHERWIN WILLIAMS 455 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHERWIN WILLIAMS 455 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 SHERWIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHERWIN WILLIAMS 455 has no effect on the direction of NYSE Composite i.e., NYSE Composite and SHERWIN go up and down completely randomly.
Pair Corralation between NYSE Composite and SHERWIN
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.25 times more return on investment than SHERWIN. However, NYSE Composite is 3.99 times less risky than SHERWIN. It trades about 0.13 of its potential returns per unit of risk. SHERWIN WILLIAMS 455 percent is currently generating about -0.21 per unit of risk. If you would invest 1,898,790 in NYSE Composite on September 12, 2024 and sell it today you would earn a total of 89,400 from holding NYSE Composite or generate 4.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 60.32% |
Values | Daily Returns |
NYSE Composite vs. SHERWIN WILLIAMS 455 percent
Performance |
Timeline |
NYSE Composite and SHERWIN Volatility Contrast
Predicted Return Density |
Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
SHERWIN WILLIAMS 455 percent
Pair trading matchups for SHERWIN
Pair Trading with NYSE Composite and SHERWIN
The main advantage of trading using opposite NYSE Composite and SHERWIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, SHERWIN 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 SHERWIN will offset losses from the drop in SHERWIN's long position.NYSE Composite vs. Teleflex Incorporated | NYSE Composite vs. Victorias Secret Co | NYSE Composite vs. Under Armour C | NYSE Composite vs. Steven Madden |
SHERWIN vs. Naked Wines plc | SHERWIN vs. Diageo PLC ADR | SHERWIN vs. SunLink Health Systems | SHERWIN vs. Treasury Wine Estates |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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