Correlation Between QuickLogic and Nasdaq
Can any of the company-specific risk be diversified away by investing in both QuickLogic and Nasdaq 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 QuickLogic and Nasdaq into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between QuickLogic and Nasdaq Inc, you can compare the effects of market volatilities on QuickLogic and Nasdaq 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 QuickLogic with a short position of Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of QuickLogic and Nasdaq.
Diversification Opportunities for QuickLogic and Nasdaq
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between QuickLogic and Nasdaq is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding QuickLogic and Nasdaq Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq Inc and QuickLogic 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 QuickLogic are associated (or correlated) with Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq Inc has no effect on the direction of QuickLogic i.e., QuickLogic and Nasdaq go up and down completely randomly.
Pair Corralation between QuickLogic and Nasdaq
Given the investment horizon of 90 days QuickLogic is expected to under-perform the Nasdaq. In addition to that, QuickLogic is 3.42 times more volatile than Nasdaq Inc. It trades about -0.02 of its total potential returns per unit of risk. Nasdaq Inc is currently generating about 0.14 per unit of volatility. If you would invest 5,539 in Nasdaq Inc on August 29, 2024 and sell it today you would earn a total of 2,726 from holding Nasdaq Inc or generate 49.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
QuickLogic vs. Nasdaq Inc
Performance |
| Timeline |
| QuickLogic |
| Nasdaq Inc |
QuickLogic and Nasdaq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QuickLogic and Nasdaq
The main advantage of trading using opposite QuickLogic and Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QuickLogic position performs unexpectedly, Nasdaq 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 Nasdaq will offset losses from the drop in Nasdaq's long position.| QuickLogic vs. Pixelworks | QuickLogic vs. AXT Inc | QuickLogic vs. Power Integrations | QuickLogic vs. Lattice Semiconductor |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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