Correlation Between Nasdaq and SCREEN Holdings
Can any of the company-specific risk be diversified away by investing in both Nasdaq and SCREEN Holdings 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 SCREEN Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq Inc and SCREEN Holdings Co, you can compare the effects of market volatilities on Nasdaq and SCREEN Holdings 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 SCREEN Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and SCREEN Holdings.
Diversification Opportunities for Nasdaq and SCREEN Holdings
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nasdaq and SCREEN is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc and SCREEN Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCREEN Holdings 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 SCREEN Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCREEN Holdings has no effect on the direction of Nasdaq i.e., Nasdaq and SCREEN Holdings go up and down completely randomly.
Pair Corralation between Nasdaq and SCREEN Holdings
Given the investment horizon of 90 days Nasdaq Inc is expected to generate 0.33 times more return on investment than SCREEN Holdings. However, Nasdaq Inc is 3.03 times less risky than SCREEN Holdings. It trades about 0.28 of its potential returns per unit of risk. SCREEN Holdings Co is currently generating about -0.59 per unit of risk. If you would invest 7,256 in Nasdaq Inc on August 27, 2024 and sell it today you would earn a total of 896.00 from holding Nasdaq Inc or generate 12.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 20.93% |
| Values | Daily Returns |
Nasdaq Inc vs. SCREEN Holdings Co
Performance |
| Timeline |
| Nasdaq Inc |
| SCREEN Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nasdaq and SCREEN Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq and SCREEN Holdings
The main advantage of trading using opposite Nasdaq and SCREEN Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq position performs unexpectedly, SCREEN Holdings 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 SCREEN Holdings will offset losses from the drop in SCREEN Holdings' long position.The idea behind Nasdaq Inc and SCREEN Holdings 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.| SCREEN Holdings vs. ASML Holding NV | SCREEN Holdings vs. Applied Materials | SCREEN Holdings vs. Lam Research Corp | SCREEN Holdings vs. KLA Tencor |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |