Correlation Between Nasdaq and China Enterprise
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nasdaq Inc and China Enterprise Co, you can compare the effects of market volatilities on Nasdaq and China Enterprise 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 China Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and China Enterprise.
Diversification Opportunities for Nasdaq and China Enterprise
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nasdaq and China is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc and China Enterprise Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Enterprise 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 China Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Enterprise has no effect on the direction of Nasdaq i.e., Nasdaq and China Enterprise go up and down completely randomly.
Pair Corralation between Nasdaq and China Enterprise
Given the investment horizon of 90 days Nasdaq Inc is expected to under-perform the China Enterprise. But the stock apears to be less risky and, when comparing its historical volatility, Nasdaq Inc is 2.92 times less risky than China Enterprise. The stock trades about -0.26 of its potential returns per unit of risk. The China Enterprise Co is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 300.00 in China Enterprise Co on September 29, 2024 and sell it today you would lose (10.00) from holding China Enterprise Co or give up 3.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Nasdaq Inc vs. China Enterprise Co
Performance |
| Timeline |
| Nasdaq Inc |
| China Enterprise |
Nasdaq and China Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq and China Enterprise
The main advantage of trading using opposite Nasdaq and China Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq position performs unexpectedly, China Enterprise 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 China Enterprise will offset losses from the drop in China Enterprise's long position.The idea behind Nasdaq Inc and China Enterprise Co 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.| China Enterprise vs. Tongyu Communication | China Enterprise vs. Miracll Chemicals Co | China Enterprise vs. Fiberhome Telecommunication Technologies | China Enterprise vs. SUNSEA Telecommunications 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |