Correlation Between Nasdaq and Peak Fintech
Can any of the company-specific risk be diversified away by investing in both Nasdaq and Peak Fintech 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 Peak Fintech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq Inc and Peak Fintech Group, you can compare the effects of market volatilities on Nasdaq and Peak Fintech 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 Peak Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and Peak Fintech.
Diversification Opportunities for Nasdaq and Peak Fintech
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nasdaq and Peak is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc and Peak Fintech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peak Fintech Group 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 Peak Fintech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peak Fintech Group has no effect on the direction of Nasdaq i.e., Nasdaq and Peak Fintech go up and down completely randomly.
Pair Corralation between Nasdaq and Peak Fintech
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 | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Nasdaq Inc vs. Peak Fintech Group
Performance |
| Timeline |
| Nasdaq Inc |
| Peak Fintech Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nasdaq and Peak Fintech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq and Peak Fintech
The main advantage of trading using opposite Nasdaq and Peak Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq position performs unexpectedly, Peak Fintech 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 Peak Fintech will offset losses from the drop in Peak Fintech's long position.The idea behind Nasdaq Inc and Peak Fintech Group 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.| Peak Fintech vs. NL Industries | Peak Fintech vs. Chemours Co | Peak Fintech vs. Origin Materials | Peak Fintech vs. SEI Investments |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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