Correlation Between Nasdaq and NIGERIA ENERGY
Can any of the company-specific risk be diversified away by investing in both Nasdaq and NIGERIA ENERGY 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 NIGERIA ENERGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq Inc and NIGERIA ENERGY SECTOR, you can compare the effects of market volatilities on Nasdaq and NIGERIA ENERGY 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 NIGERIA ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and NIGERIA ENERGY.
Diversification Opportunities for Nasdaq and NIGERIA ENERGY
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nasdaq and NIGERIA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc and NIGERIA ENERGY SECTOR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIGERIA ENERGY SECTOR 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 NIGERIA ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIGERIA ENERGY SECTOR has no effect on the direction of Nasdaq i.e., Nasdaq and NIGERIA ENERGY go up and down completely randomly.
Pair Corralation between Nasdaq and NIGERIA ENERGY
If you would invest 7,954 in Nasdaq Inc on September 19, 2024 and sell it today you would earn a total of 7.00 from holding Nasdaq Inc or generate 0.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Nasdaq Inc vs. NIGERIA ENERGY SECTOR
Performance |
| Timeline |
| Nasdaq Inc |
| NIGERIA ENERGY SECTOR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nasdaq and NIGERIA ENERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq and NIGERIA ENERGY
The main advantage of trading using opposite Nasdaq and NIGERIA ENERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq position performs unexpectedly, NIGERIA ENERGY 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 NIGERIA ENERGY will offset losses from the drop in NIGERIA ENERGY's long position.The idea behind Nasdaq Inc and NIGERIA ENERGY SECTOR 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.| NIGERIA ENERGY vs. SECURE ELECTRONIC TECHNOLOGY | NIGERIA ENERGY vs. BUA FOODS PLC | NIGERIA ENERGY vs. MULTI TREX INTEGRATED FOODS | NIGERIA ENERGY vs. STACO INSURANCE PLC |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stocks Directory Find actively traded stocks across global markets |