Correlation Between UNITED and Nasdaq
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By analyzing existing cross correlation between UNITED TECHNOLOGIES P and Nasdaq Inc, you can compare the effects of market volatilities on UNITED 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 UNITED with a short position of Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNITED and Nasdaq.
Diversification Opportunities for UNITED and Nasdaq
Pay attention - limited upside
The 3 months correlation between UNITED and Nasdaq is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding UNITED TECHNOLOGIES P and Nasdaq Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq Inc and UNITED 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 UNITED TECHNOLOGIES P 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 UNITED i.e., UNITED and Nasdaq go up and down completely randomly.
Pair Corralation between UNITED and Nasdaq
Assuming the 90 days trading horizon UNITED TECHNOLOGIES P is expected to under-perform the Nasdaq. But the bond apears to be less risky and, when comparing its historical volatility, UNITED TECHNOLOGIES P is 2.57 times less risky than Nasdaq. The bond trades about -0.02 of its potential returns per unit of risk. The Nasdaq Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 6,323 in Nasdaq Inc on September 3, 2024 and sell it today you would earn a total of 1,976 from holding Nasdaq Inc or generate 31.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.57% |
| Values | Daily Returns |
UNITED TECHNOLOGIES P vs. Nasdaq Inc
Performance |
| Timeline |
| UNITED TECHNOLOGIES |
| Nasdaq Inc |
UNITED and Nasdaq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNITED and Nasdaq
The main advantage of trading using opposite UNITED and Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNITED 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.| UNITED vs. Nasdaq Inc | UNITED vs. Artisan Partners Asset | UNITED vs. Inflection Point Acquisition | UNITED vs. Stepstone 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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