Correlation Between Nasdaq and IMMOFINANZ
Can any of the company-specific risk be diversified away by investing in both Nasdaq and IMMOFINANZ 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 IMMOFINANZ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq Inc and IMMOFINANZ AG, you can compare the effects of market volatilities on Nasdaq and IMMOFINANZ 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 IMMOFINANZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and IMMOFINANZ.
Diversification Opportunities for Nasdaq and IMMOFINANZ
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nasdaq and IMMOFINANZ is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc and IMMOFINANZ AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMMOFINANZ AG 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 IMMOFINANZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IMMOFINANZ AG has no effect on the direction of Nasdaq i.e., Nasdaq and IMMOFINANZ go up and down completely randomly.
Pair Corralation between Nasdaq and IMMOFINANZ
Given the investment horizon of 90 days Nasdaq Inc is expected to generate 0.74 times more return on investment than IMMOFINANZ. However, Nasdaq Inc is 1.35 times less risky than IMMOFINANZ. It trades about 0.07 of its potential returns per unit of risk. IMMOFINANZ AG is currently generating about 0.04 per unit of risk. If you would invest 5,137 in Nasdaq Inc on December 6, 2024 and sell it today you would earn a total of 2,480 from holding Nasdaq Inc or generate 48.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.8% |
| Values | Daily Returns |
Nasdaq Inc vs. IMMOFINANZ AG
Performance |
| Timeline |
| Nasdaq Inc |
| IMMOFINANZ AG |
Nasdaq and IMMOFINANZ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq and IMMOFINANZ
The main advantage of trading using opposite Nasdaq and IMMOFINANZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq position performs unexpectedly, IMMOFINANZ 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 IMMOFINANZ will offset losses from the drop in IMMOFINANZ's long position.The idea behind Nasdaq Inc and IMMOFINANZ AG 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.| IMMOFINANZ vs. CA Immobilien Anlagen | IMMOFINANZ vs. Voestalpine AG | IMMOFINANZ vs. Raiffeisen Bank International | IMMOFINANZ vs. UNIQA Insurance Group |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |