Correlation Between Nasdaq and 5EL SA
Can any of the company-specific risk be diversified away by investing in both Nasdaq and 5EL SA 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 Nasdaq and 5EL SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq Inc and 5EL SA, you can compare the effects of market volatilities on Nasdaq and 5EL SA 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 Nasdaq with a short position of 5EL SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and 5EL SA.
Diversification Opportunities for Nasdaq and 5EL SA
Pay attention - limited upside
The 3 months correlation between Nasdaq and 5EL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc and 5EL SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 5EL SA and Nasdaq 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 Nasdaq Inc are associated (or correlated) with 5EL SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 5EL SA has no effect on the direction of Nasdaq i.e., Nasdaq and 5EL SA go up and down completely randomly.
Pair Corralation between Nasdaq and 5EL SA
If you would invest 5,843 in Nasdaq Inc on September 26, 2024 and sell it today you would earn a total of 2,049 from holding Nasdaq Inc or generate 35.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Nasdaq Inc vs. 5EL SA
Performance |
Timeline |
Nasdaq Inc |
5EL SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nasdaq and 5EL SA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nasdaq and 5EL SA
The main advantage of trading using opposite Nasdaq and 5EL SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq position performs unexpectedly, 5EL SA 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 5EL SA will offset losses from the drop in 5EL SA's long position.The idea behind Nasdaq Inc and 5EL SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.5EL SA vs. VP Bank AG | 5EL SA vs. mobilezone ag | 5EL SA vs. Metall Zug AG | 5EL SA vs. Glarner Kantonalbank |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Share Portfolio Track or share privately all of your investments from the convenience of any device |