Correlation Between Nasdaq and Globlex Holding

Can any of the company-specific risk be diversified away by investing in both Nasdaq and Globlex Holding 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 Globlex Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nasdaq Inc and Globlex Holding Management, you can compare the effects of market volatilities on Nasdaq and Globlex Holding 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 Globlex Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and Globlex Holding.

Diversification Opportunities for Nasdaq and Globlex Holding

-0.9

Correlation Coefficient

Nasdaq  Globlex Holding

Pay attention - limited upside

The 3 months correlation between Nasdaq and Globlex is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc and Globlex Holding Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globlex Holding Mana 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 Globlex Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globlex Holding Mana has no effect on the direction of Nasdaq i.e., Nasdaq and Globlex Holding go up and down completely randomly.

Pair Corralation between Nasdaq and Globlex Holding

Given the investment horizon of 90 days Nasdaq Inc is expected to under-perform the Globlex Holding. But the stock apears to be less risky and, when comparing its historical volatility, Nasdaq Inc is 2.02 times less risky than Globlex Holding. The stock trades about -0.18 of its potential returns per unit of risk. The Globlex Holding Management is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  67.00  in Globlex Holding Management on September 23, 2024 and sell it today you would lose (1.00) from holding Globlex Holding Management or give up 1.49% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	95.24%
Values	Daily Returns

Nasdaq Inc  vs.  Globlex Holding Management

Nasdaq Inc

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Nasdaq Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Nasdaq is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Globlex Holding Mana

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Globlex Holding Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Nasdaq and Globlex Holding

The main advantage of trading using opposite Nasdaq and Globlex Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq position performs unexpectedly, Globlex Holding 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 Globlex Holding will offset losses from the drop in Globlex Holding's long position.

The idea behind Nasdaq Inc and Globlex Holding Management 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.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.