Correlation Between Nasdaq and ANALOG
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nasdaq Inc and ANALOG DEVICES INC, you can compare the effects of market volatilities on Nasdaq and ANALOG 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 ANALOG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and ANALOG.
Diversification Opportunities for Nasdaq and ANALOG
Very good diversification
The 3 months correlation between Nasdaq and ANALOG is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc and ANALOG DEVICES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANALOG DEVICES INC 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 ANALOG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANALOG DEVICES INC has no effect on the direction of Nasdaq i.e., Nasdaq and ANALOG go up and down completely randomly.
Pair Corralation between Nasdaq and ANALOG
Given the investment horizon of 90 days Nasdaq Inc is expected to generate 0.8 times more return on investment than ANALOG. However, Nasdaq Inc is 1.24 times less risky than ANALOG. It trades about 0.07 of its potential returns per unit of risk. ANALOG DEVICES INC is currently generating about -0.03 per unit of risk. If you would invest 5,269 in Nasdaq Inc on November 28, 2024 and sell it today you would earn a total of 2,735 from holding Nasdaq Inc or generate 51.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 33.2% |
| Values | Daily Returns |
Nasdaq Inc vs. ANALOG DEVICES INC
Performance |
| Timeline |
| Nasdaq Inc |
| ANALOG DEVICES INC |
Nasdaq and ANALOG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq and ANALOG
The main advantage of trading using opposite Nasdaq and ANALOG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq position performs unexpectedly, ANALOG 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 ANALOG will offset losses from the drop in ANALOG's long position.The idea behind Nasdaq Inc and ANALOG DEVICES INC 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.| ANALOG vs. Fomento Economico Mexicano | ANALOG vs. High Performance Beverages | ANALOG vs. Constellation Brands Class | ANALOG vs. Ambev SA ADR |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |