Correlation Between NVIDIA and Emera Maine
Can any of the company-specific risk be diversified away by investing in both NVIDIA and Emera Maine 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 NVIDIA and Emera Maine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NVIDIA and Emera Maine PFD, you can compare the effects of market volatilities on NVIDIA and Emera Maine 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 NVIDIA with a short position of Emera Maine. Check out your portfolio center. Please also check ongoing floating volatility patterns of NVIDIA and Emera Maine.
Diversification Opportunities for NVIDIA and Emera Maine
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NVIDIA and Emera is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding NVIDIA and Emera Maine PFD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emera Maine PFD and NVIDIA 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 NVIDIA are associated (or correlated) with Emera Maine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emera Maine PFD has no effect on the direction of NVIDIA i.e., NVIDIA and Emera Maine go up and down completely randomly.
Pair Corralation between NVIDIA and Emera Maine
If you would invest 13,276 in NVIDIA on September 1, 2024 and sell it today you would earn a total of 549.00 from holding NVIDIA or generate 4.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
NVIDIA vs. Emera Maine PFD
Performance |
| Timeline |
| NVIDIA |
| Emera Maine PFD |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
NVIDIA and Emera Maine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NVIDIA and Emera Maine
The main advantage of trading using opposite NVIDIA and Emera Maine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NVIDIA position performs unexpectedly, Emera Maine 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 Emera Maine will offset losses from the drop in Emera Maine's long position.| NVIDIA vs. Intel | NVIDIA vs. Taiwan Semiconductor Manufacturing | NVIDIA vs. Marvell Technology Group | NVIDIA vs. Micron Technology |
| Emera Maine vs. Sapiens International | Emera Maine vs. Rumble Inc | Emera Maine vs. Uber Technologies | Emera Maine vs. Asure Software |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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