Correlation Between Nasdaq and Hedef Holdings
Can any of the company-specific risk be diversified away by investing in both Nasdaq and Hedef 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 Hedef 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 Hedef Holdings AS, you can compare the effects of market volatilities on Nasdaq and Hedef 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 Hedef Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and Hedef Holdings.
Diversification Opportunities for Nasdaq and Hedef Holdings
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nasdaq and Hedef is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc and Hedef Holdings AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hedef Holdings AS 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 Hedef Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hedef Holdings AS has no effect on the direction of Nasdaq i.e., Nasdaq and Hedef Holdings go up and down completely randomly.
Pair Corralation between Nasdaq and Hedef Holdings
Given the investment horizon of 90 days Nasdaq Inc is expected to generate 0.55 times more return on investment than Hedef Holdings. However, Nasdaq Inc is 1.81 times less risky than Hedef Holdings. It trades about 0.11 of its potential returns per unit of risk. Hedef Holdings AS is currently generating about 0.04 per unit of risk. If you would invest 7,942 in Nasdaq Inc on September 12, 2024 and sell it today you would earn a total of 192.00 from holding Nasdaq Inc or generate 2.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Nasdaq Inc vs. Hedef Holdings AS
Performance |
| Timeline |
| Nasdaq Inc |
| Hedef Holdings AS |
Nasdaq and Hedef Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq and Hedef Holdings
The main advantage of trading using opposite Nasdaq and Hedef Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq position performs unexpectedly, Hedef 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 Hedef Holdings will offset losses from the drop in Hedef Holdings' long position.The idea behind Nasdaq Inc and Hedef Holdings AS 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.| Hedef Holdings vs. Qnb Finansbank AS | Hedef Holdings vs. Bms Birlesik Metal | Hedef Holdings vs. Politeknik Metal Sanayi | Hedef Holdings vs. Gentas Genel Metal |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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