Correlation Between One Group and Nasdaq
Can any of the company-specific risk be diversified away by investing in both One Group 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 One Group and Nasdaq into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between One Group Hospitality and Nasdaq Inc, you can compare the effects of market volatilities on One Group 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 One Group with a short position of Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Group and Nasdaq.
Diversification Opportunities for One Group and Nasdaq
Very weak diversification
The 3 months correlation between One and Nasdaq is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding One Group Hospitality and Nasdaq Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq Inc and One Group 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 One Group Hospitality 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 One Group i.e., One Group and Nasdaq go up and down completely randomly.
Pair Corralation between One Group and Nasdaq
Given the investment horizon of 90 days One Group Hospitality is expected to under-perform the Nasdaq. In addition to that, One Group is 2.73 times more volatile than Nasdaq Inc. It trades about -0.03 of its total potential returns per unit of risk. Nasdaq Inc is currently generating about 0.07 per unit of volatility. If you would invest 5,508 in Nasdaq Inc on November 9, 2024 and sell it today you would earn a total of 2,868 from holding Nasdaq Inc or generate 52.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
One Group Hospitality vs. Nasdaq Inc
Performance |
| Timeline |
| One Group Hospitality |
| Nasdaq Inc |
One Group and Nasdaq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with One Group and Nasdaq
The main advantage of trading using opposite One Group and Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One Group 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.| One Group vs. FAT Brands | One Group vs. Potbelly Co | One Group vs. BJs Restaurants | One Group vs. Rave Restaurant Group |
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
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |