Correlation Between Nasdaq and Kutxabank Bolsa
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By analyzing existing cross correlation between Nasdaq Inc and Kutxabank Bolsa Global, you can compare the effects of market volatilities on Nasdaq and Kutxabank Bolsa 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 Kutxabank Bolsa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and Kutxabank Bolsa.
Diversification Opportunities for Nasdaq and Kutxabank Bolsa
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nasdaq and Kutxabank is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc and Kutxabank Bolsa Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kutxabank Bolsa Global 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 Kutxabank Bolsa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kutxabank Bolsa Global has no effect on the direction of Nasdaq i.e., Nasdaq and Kutxabank Bolsa go up and down completely randomly.
Pair Corralation between Nasdaq and Kutxabank Bolsa
Given the investment horizon of 90 days Nasdaq Inc is expected to generate 2.5 times more return on investment than Kutxabank Bolsa. However, Nasdaq is 2.5 times more volatile than Kutxabank Bolsa Global. It trades about 0.14 of its potential returns per unit of risk. Kutxabank Bolsa Global is currently generating about 0.12 per unit of risk. If you would invest 5,318 in Nasdaq Inc on September 14, 2024 and sell it today you would earn a total of 2,694 from holding Nasdaq Inc or generate 50.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.53% |
| Values | Daily Returns |
Nasdaq Inc vs. Kutxabank Bolsa Global
Performance |
| Timeline |
| Nasdaq Inc |
| Kutxabank Bolsa Global |
Nasdaq and Kutxabank Bolsa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq and Kutxabank Bolsa
The main advantage of trading using opposite Nasdaq and Kutxabank Bolsa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq position performs unexpectedly, Kutxabank Bolsa 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 Kutxabank Bolsa will offset losses from the drop in Kutxabank Bolsa's long position.The idea behind Nasdaq Inc and Kutxabank Bolsa Global pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Kutxabank Bolsa vs. Myinvestor Indexado Global | Kutxabank Bolsa vs. CI Global Alpha | Kutxabank Bolsa vs. Cobas Mixto Global | Kutxabank Bolsa vs. BK Variable Internacional |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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