Correlation Between Nasdaq and Ingram Micro
Can any of the company-specific risk be diversified away by investing in both Nasdaq and Ingram Micro 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 Ingram Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq Inc and Ingram Micro, you can compare the effects of market volatilities on Nasdaq and Ingram Micro 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 Ingram Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and Ingram Micro.
Diversification Opportunities for Nasdaq and Ingram Micro
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nasdaq and Ingram is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc and Ingram Micro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingram Micro 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 Ingram Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingram Micro has no effect on the direction of Nasdaq i.e., Nasdaq and Ingram Micro go up and down completely randomly.
Pair Corralation between Nasdaq and Ingram Micro
If you would invest 7,407 in Nasdaq Inc on September 20, 2024 and sell it today you would earn a total of 340.00 from holding Nasdaq Inc or generate 4.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Nasdaq Inc vs. Ingram Micro
Performance |
| Timeline |
| Nasdaq Inc |
| Ingram Micro |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nasdaq and Ingram Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq and Ingram Micro
The main advantage of trading using opposite Nasdaq and Ingram Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq position performs unexpectedly, Ingram Micro 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 Ingram Micro will offset losses from the drop in Ingram Micro's long position.The idea behind Nasdaq Inc and Ingram Micro 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.| Ingram Micro vs. World Houseware Limited | Ingram Micro vs. Edgewell Personal Care | Ingram Micro vs. Inter Parfums | Ingram Micro vs. Analog Devices |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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