Correlation Between Global E and Nasdaq CTA
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By analyzing existing cross correlation between Global E Online and Nasdaq CTA Artificial, you can compare the effects of market volatilities on Global E and Nasdaq CTA 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 Global E with a short position of Nasdaq CTA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global E and Nasdaq CTA.
Diversification Opportunities for Global E and Nasdaq CTA
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Global and Nasdaq is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Global E Online and Nasdaq CTA Artificial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq CTA Artificial and Global E 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 Global E Online are associated (or correlated) with Nasdaq CTA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq CTA Artificial has no effect on the direction of Global E i.e., Global E and Nasdaq CTA go up and down completely randomly.
Pair Corralation between Global E and Nasdaq CTA
Given the investment horizon of 90 days Global E Online is expected to generate 2.91 times more return on investment than Nasdaq CTA. However, Global E is 2.91 times more volatile than Nasdaq CTA Artificial. It trades about 0.55 of its potential returns per unit of risk. Nasdaq CTA Artificial is currently generating about 0.26 per unit of risk. If you would invest 4,082 in Global E Online on September 19, 2024 and sell it today you would earn a total of 1,600 from holding Global E Online or generate 39.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Global E Online vs. Nasdaq CTA Artificial
Performance |
| Timeline |
Global E and Nasdaq CTA Volatility Contrast
Predicted Return Density |
| Returns |
Global E Online
Pair trading matchups for Global E
Nasdaq CTA Artificial
Pair trading matchups for Nasdaq CTA
Pair Trading with Global E and Nasdaq CTA
The main advantage of trading using opposite Global E and Nasdaq CTA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global E position performs unexpectedly, Nasdaq CTA 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 Nasdaq CTA will offset losses from the drop in Nasdaq CTA's long position.| Global E vs. Twilio Inc | Global E vs. Getty Images Holdings | Global E vs. Baidu Inc | Global E vs. Snap Inc |
| Nasdaq CTA vs. Lucid Group | Nasdaq CTA vs. Dana Inc | Nasdaq CTA vs. Thor Industries | Nasdaq CTA vs. PACCAR Inc |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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