Correlation Between Rand Capital and Nasdaq Benchmark
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By analyzing existing cross correlation between Rand Capital Corp and Nasdaq Benchmark Energy, you can compare the effects of market volatilities on Rand Capital and Nasdaq Benchmark 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 Rand Capital with a short position of Nasdaq Benchmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rand Capital and Nasdaq Benchmark.
Diversification Opportunities for Rand Capital and Nasdaq Benchmark
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rand and Nasdaq is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Rand Capital Corp and Nasdaq Benchmark Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq Benchmark Energy and Rand Capital 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 Rand Capital Corp are associated (or correlated) with Nasdaq Benchmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq Benchmark Energy has no effect on the direction of Rand Capital i.e., Rand Capital and Nasdaq Benchmark go up and down completely randomly.
Pair Corralation between Rand Capital and Nasdaq Benchmark
Given the investment horizon of 90 days Rand Capital Corp is expected to generate 4.81 times more return on investment than Nasdaq Benchmark. However, Rand Capital is 4.81 times more volatile than Nasdaq Benchmark Energy. It trades about 0.26 of its potential returns per unit of risk. Nasdaq Benchmark Energy is currently generating about -0.58 per unit of risk. If you would invest 1,345 in Rand Capital Corp on September 24, 2024 and sell it today you would earn a total of 345.00 from holding Rand Capital Corp or generate 25.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rand Capital Corp vs. Nasdaq Benchmark Energy
Performance |
| Timeline |
Rand Capital and Nasdaq Benchmark Volatility Contrast
Predicted Return Density |
| Returns |
Rand Capital Corp
Pair trading matchups for Rand Capital
Nasdaq Benchmark Energy
Pair trading matchups for Nasdaq Benchmark
Pair Trading with Rand Capital and Nasdaq Benchmark
The main advantage of trading using opposite Rand Capital and Nasdaq Benchmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rand Capital position performs unexpectedly, Nasdaq Benchmark 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 Benchmark will offset losses from the drop in Nasdaq Benchmark's long position.| Rand Capital vs. Blackstone Gso Long | Rand Capital vs. First Trust Senior | Rand Capital vs. Eaton Vance Senior | Rand Capital vs. Princeton Capital |
| Nasdaq Benchmark vs. Rand Capital Corp | Nasdaq Benchmark vs. Brenmiller Energy Ltd | Nasdaq Benchmark vs. Citizens Bancorp Investment | Nasdaq Benchmark vs. Topbuild Corp |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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