Correlation Between Nasdaq and Namu Tech
Can any of the company-specific risk be diversified away by investing in both Nasdaq and Namu Tech 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 Namu Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq Inc and Namu Tech CoLtd, you can compare the effects of market volatilities on Nasdaq and Namu Tech 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 Namu Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and Namu Tech.
Diversification Opportunities for Nasdaq and Namu Tech
Very good diversification
The 3 months correlation between Nasdaq and Namu is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc and Namu Tech CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Namu Tech CoLtd 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 Namu Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Namu Tech CoLtd has no effect on the direction of Nasdaq i.e., Nasdaq and Namu Tech go up and down completely randomly.
Pair Corralation between Nasdaq and Namu Tech
Given the investment horizon of 90 days Nasdaq Inc is expected to generate 0.4 times more return on investment than Namu Tech. However, Nasdaq Inc is 2.49 times less risky than Namu Tech. It trades about 0.13 of its potential returns per unit of risk. Namu Tech CoLtd is currently generating about -0.05 per unit of risk. If you would invest 5,525 in Nasdaq Inc on September 30, 2024 and sell it today you would earn a total of 2,317 from holding Nasdaq Inc or generate 41.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.19% |
| Values | Daily Returns |
Nasdaq Inc vs. Namu Tech CoLtd
Performance |
| Timeline |
| Nasdaq Inc |
| Namu Tech CoLtd |
Nasdaq and Namu Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq and Namu Tech
The main advantage of trading using opposite Nasdaq and Namu Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq position performs unexpectedly, Namu Tech 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 Namu Tech will offset losses from the drop in Namu Tech's long position.The idea behind Nasdaq Inc and Namu Tech CoLtd 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.| Namu Tech vs. Myoung Shin Industrial | Namu Tech vs. DSC Investment | Namu Tech vs. KTB Investment Securities | Namu Tech vs. Seoyon Topmetal Co |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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