Correlation Between Nasdaq and Hudson United
Can any of the company-specific risk be diversified away by investing in both Nasdaq and Hudson United 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 Hudson United into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq Inc and Hudson United Bancorp, you can compare the effects of market volatilities on Nasdaq and Hudson United 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 Hudson United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and Hudson United.
Diversification Opportunities for Nasdaq and Hudson United
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nasdaq and Hudson is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc and Hudson United Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hudson United Bancorp 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 Hudson United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hudson United Bancorp has no effect on the direction of Nasdaq i.e., Nasdaq and Hudson United go up and down completely randomly.
Pair Corralation between Nasdaq and Hudson United
If you would invest 5,065 in Nasdaq Inc on September 12, 2024 and sell it today you would earn a total of 3,039 from holding Nasdaq Inc or generate 60.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Nasdaq Inc vs. Hudson United Bancorp
Performance |
| Timeline |
| Nasdaq Inc |
| Hudson United Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nasdaq and Hudson United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq and Hudson United
The main advantage of trading using opposite Nasdaq and Hudson United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq position performs unexpectedly, Hudson United 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 Hudson United will offset losses from the drop in Hudson United's long position.The idea behind Nasdaq Inc and Hudson United Bancorp 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.| Hudson United vs. Definitive Healthcare Corp | Hudson United vs. Barrick Gold Corp | Hudson United vs. Agnico Eagle Mines | Hudson United vs. Uranium Energy 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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