Correlation Between Nasdaq and Antilles Gold
Can any of the company-specific risk be diversified away by investing in both Nasdaq and Antilles Gold 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 Antilles Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq Inc and Antilles Gold Limited, you can compare the effects of market volatilities on Nasdaq and Antilles Gold 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 Antilles Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and Antilles Gold.
Diversification Opportunities for Nasdaq and Antilles Gold
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nasdaq and Antilles is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc and Antilles Gold Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antilles Gold Limited 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 Antilles Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antilles Gold Limited has no effect on the direction of Nasdaq i.e., Nasdaq and Antilles Gold go up and down completely randomly.
Pair Corralation between Nasdaq and Antilles Gold
Given the investment horizon of 90 days Nasdaq is expected to generate 10.37 times less return on investment than Antilles Gold. But when comparing it to its historical volatility, Nasdaq Inc is 19.76 times less risky than Antilles Gold. It trades about 0.62 of its potential returns per unit of risk. Antilles Gold Limited is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 0.22 in Antilles Gold Limited on September 1, 2024 and sell it today you would earn a total of 0.38 from holding Antilles Gold Limited or generate 172.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Nasdaq Inc vs. Antilles Gold Limited
Performance |
| Timeline |
| Nasdaq Inc |
| Antilles Gold Limited |
Nasdaq and Antilles Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq and Antilles Gold
The main advantage of trading using opposite Nasdaq and Antilles Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq position performs unexpectedly, Antilles Gold 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 Antilles Gold will offset losses from the drop in Antilles Gold's long position.The idea behind Nasdaq Inc and Antilles Gold Limited 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.| Antilles Gold vs. Aurion Resources | Antilles Gold vs. Rio2 Limited | Antilles Gold vs. Palamina Corp | Antilles Gold vs. BTU Metals Corp |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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