Correlation Between Nasdaq and Cassiar Gold
Can any of the company-specific risk be diversified away by investing in both Nasdaq and Cassiar 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 Cassiar 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 Cassiar Gold Corp, you can compare the effects of market volatilities on Nasdaq and Cassiar 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 Cassiar Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and Cassiar Gold.
Diversification Opportunities for Nasdaq and Cassiar Gold
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nasdaq and Cassiar is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc and Cassiar Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cassiar Gold Corp 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 Cassiar Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cassiar Gold Corp has no effect on the direction of Nasdaq i.e., Nasdaq and Cassiar Gold go up and down completely randomly.
Pair Corralation between Nasdaq and Cassiar Gold
Given the investment horizon of 90 days Nasdaq Inc is expected to generate 0.27 times more return on investment than Cassiar Gold. However, Nasdaq Inc is 3.65 times less risky than Cassiar Gold. It trades about 0.12 of its potential returns per unit of risk. Cassiar Gold Corp is currently generating about -0.02 per unit of risk. If you would invest 4,981 in Nasdaq Inc on September 2, 2024 and sell it today you would earn a total of 3,318 from holding Nasdaq Inc or generate 66.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq Inc vs. Cassiar Gold Corp
Performance |
| Timeline |
| Nasdaq Inc |
| Cassiar Gold Corp |
Nasdaq and Cassiar Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq and Cassiar Gold
The main advantage of trading using opposite Nasdaq and Cassiar Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq position performs unexpectedly, Cassiar 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 Cassiar Gold will offset losses from the drop in Cassiar Gold's long position.The idea behind Nasdaq Inc and Cassiar Gold Corp 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.| Cassiar Gold vs. Aurion Resources | Cassiar Gold vs. Rio2 Limited | Cassiar Gold vs. Palamina Corp | Cassiar 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |