Correlation Between Globalfoundries and NSTAR
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By analyzing existing cross correlation between Globalfoundries and NSTAR Electric Co, you can compare the effects of market volatilities on Globalfoundries and NSTAR 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 Globalfoundries with a short position of NSTAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globalfoundries and NSTAR.
Diversification Opportunities for Globalfoundries and NSTAR
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Globalfoundries and NSTAR is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Globalfoundries and NSTAR Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NSTAR Electric and Globalfoundries 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 Globalfoundries are associated (or correlated) with NSTAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NSTAR Electric has no effect on the direction of Globalfoundries i.e., Globalfoundries and NSTAR go up and down completely randomly.
Pair Corralation between Globalfoundries and NSTAR
Considering the 90-day investment horizon Globalfoundries is expected to generate 1.88 times more return on investment than NSTAR. However, Globalfoundries is 1.88 times more volatile than NSTAR Electric Co. It trades about 0.08 of its potential returns per unit of risk. NSTAR Electric Co is currently generating about -0.2 per unit of risk. If you would invest 4,270 in Globalfoundries on September 12, 2024 and sell it today you would earn a total of 150.00 from holding Globalfoundries or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 81.82% |
| Values | Daily Returns |
Globalfoundries vs. NSTAR Electric Co
Performance |
| Timeline |
| Globalfoundries |
| NSTAR Electric |
Globalfoundries and NSTAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globalfoundries and NSTAR
The main advantage of trading using opposite Globalfoundries and NSTAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globalfoundries position performs unexpectedly, NSTAR 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 NSTAR will offset losses from the drop in NSTAR's long position.| Globalfoundries vs. NVIDIA | Globalfoundries vs. Taiwan Semiconductor Manufacturing | Globalfoundries vs. Micron Technology | Globalfoundries vs. Qualcomm Incorporated |
| NSTAR vs. AEP TEX INC | NSTAR vs. US BANK NATIONAL | NSTAR vs. Recursion Pharmaceuticals | NSTAR vs. SoundHound AI |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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