Correlation Between Nasdaq and SINGAPORE EXUNSPADR/15
Can any of the company-specific risk be diversified away by investing in both Nasdaq and SINGAPORE EXUNSPADR/15 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 Nasdaq and SINGAPORE EXUNSPADR/15 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq Inc and SINGAPORE EXUNSPADR15, you can compare the effects of market volatilities on Nasdaq and SINGAPORE EXUNSPADR/15 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 Nasdaq with a short position of SINGAPORE EXUNSPADR/15. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and SINGAPORE EXUNSPADR/15.
Diversification Opportunities for Nasdaq and SINGAPORE EXUNSPADR/15
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nasdaq and SINGAPORE is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc and SINGAPORE EXUNSPADR15 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE EXUNSPADR/15 and Nasdaq 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 Nasdaq Inc are associated (or correlated) with SINGAPORE EXUNSPADR/15. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINGAPORE EXUNSPADR/15 has no effect on the direction of Nasdaq i.e., Nasdaq and SINGAPORE EXUNSPADR/15 go up and down completely randomly.
Pair Corralation between Nasdaq and SINGAPORE EXUNSPADR/15
Assuming the 90 days horizon Nasdaq is expected to generate 1.71 times less return on investment than SINGAPORE EXUNSPADR/15. But when comparing it to its historical volatility, Nasdaq Inc is 1.09 times less risky than SINGAPORE EXUNSPADR/15. It trades about 0.06 of its potential returns per unit of risk. SINGAPORE EXUNSPADR15 is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 834.00 in SINGAPORE EXUNSPADR15 on November 2, 2024 and sell it today you would earn a total of 806.00 from holding SINGAPORE EXUNSPADR15 or generate 96.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq Inc vs. SINGAPORE EXUNSPADR15
Performance |
| Timeline |
| Nasdaq Inc |
| SINGAPORE EXUNSPADR/15 |
Nasdaq and SINGAPORE EXUNSPADR/15 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq and SINGAPORE EXUNSPADR/15
The main advantage of trading using opposite Nasdaq and SINGAPORE EXUNSPADR/15 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq position performs unexpectedly, SINGAPORE EXUNSPADR/15 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 SINGAPORE EXUNSPADR/15 will offset losses from the drop in SINGAPORE EXUNSPADR/15's long position.| Nasdaq vs. Sumitomo Mitsui Construction | Nasdaq vs. Hyatt Hotels | Nasdaq vs. China Railway Construction | Nasdaq vs. Pebblebrook Hotel Trust |
| SINGAPORE EXUNSPADR/15 vs. LONDON STEXUNSPADRS12 | SINGAPORE EXUNSPADR/15 vs. Nasdaq Inc | SINGAPORE EXUNSPADR/15 vs. Cboe Global Markets | SINGAPORE EXUNSPADR/15 vs. ASX LTD UNSPONSADR |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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