Correlation Between Nasdaq and Kent Gida

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

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

Diversification Opportunities for Nasdaq and Kent Gida

-0.5

Correlation Coefficient

Nasdaq  Kent Gida

Very good diversification

The 3 months correlation between Nasdaq and Kent is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc and Kent Gida Maddeleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kent Gida Maddeleri 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 Kent Gida. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kent Gida Maddeleri has no effect on the direction of Nasdaq i.e., Nasdaq and Kent Gida go up and down completely randomly.

Pair Corralation between Nasdaq and Kent Gida

Given the investment horizon of 90 days Nasdaq Inc is expected to generate 0.44 times more return on investment than Kent Gida. However, Nasdaq Inc is 2.29 times less risky than Kent Gida. It trades about -0.01 of its potential returns per unit of risk. Kent Gida Maddeleri is currently generating about -0.11 per unit of risk. If you would invest  7,768  in Nasdaq Inc on December 21, 2024 and sell it today you would lose (77.00) from holding Nasdaq Inc or give up 0.99% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	93.75%
Values	Daily Returns

Nasdaq Inc  vs.  Kent Gida Maddeleri

Nasdaq Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nasdaq Inc has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Kent Gida Maddeleri

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kent Gida Maddeleri has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Nasdaq and Kent Gida

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

The idea behind Nasdaq Inc and Kent Gida Maddeleri 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.