Correlation Between Nasdaq and Goldshore Resources

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

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

Diversification Opportunities for Nasdaq and Goldshore Resources

-0.87

Correlation Coefficient

Nasdaq  Goldshore Resources

Pay attention - limited upside

The 3 months correlation between Nasdaq and Goldshore is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc and Goldshore Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldshore Resources 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 Goldshore Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldshore Resources has no effect on the direction of Nasdaq i.e., Nasdaq and Goldshore Resources go up and down completely randomly.

Pair Corralation between Nasdaq and Goldshore Resources

Given the investment horizon of 90 days Nasdaq Inc is expected to under-perform the Goldshore Resources. But the stock apears to be less risky and, when comparing its historical volatility, Nasdaq Inc is 4.5 times less risky than Goldshore Resources. The stock trades about -0.22 of its potential returns per unit of risk. The Goldshore Resources is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  25.00  in Goldshore Resources on September 24, 2024 and sell it today you would lose (1.00) from holding Goldshore Resources or give up 4.0% 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.  Goldshore Resources

Nasdaq Inc

Risk-Adjusted Performance

7 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Nasdaq Inc are ranked lower than 7 (%) 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.

Goldshore Resources

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Goldshore Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's technical indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Nasdaq and Goldshore Resources

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

The idea behind Nasdaq Inc and Goldshore Resources 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.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.