Correlation Between Nasdaq and Financiera Confianza
Can any of the company-specific risk be diversified away by investing in both Nasdaq and Financiera Confianza 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 Financiera Confianza into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq Inc and Financiera Confianza SAA, you can compare the effects of market volatilities on Nasdaq and Financiera Confianza 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 Financiera Confianza. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and Financiera Confianza.
Diversification Opportunities for Nasdaq and Financiera Confianza
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nasdaq and Financiera is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc and Financiera Confianza SAA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Financiera Confianza SAA 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 Financiera Confianza. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Financiera Confianza SAA has no effect on the direction of Nasdaq i.e., Nasdaq and Financiera Confianza go up and down completely randomly.
Pair Corralation between Nasdaq and Financiera Confianza
If you would invest 5,831 in Nasdaq Inc on December 2, 2024 and sell it today you would earn a total of 2,447 from holding Nasdaq Inc or generate 41.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Nasdaq Inc vs. Financiera Confianza SAA
Performance |
| Timeline |
| Nasdaq Inc |
| Financiera Confianza SAA |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Nasdaq and Financiera Confianza Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq and Financiera Confianza
The main advantage of trading using opposite Nasdaq and Financiera Confianza positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq position performs unexpectedly, Financiera Confianza 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 Financiera Confianza will offset losses from the drop in Financiera Confianza's long position.The idea behind Nasdaq Inc and Financiera Confianza SAA 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.| Financiera Confianza vs. Banco de Credito | Financiera Confianza vs. InRetail Peru Corp | Financiera Confianza vs. Bank of America |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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