Correlation Between Nasdaq and Kirin Holdings
Can any of the company-specific risk be diversified away by investing in both Nasdaq and Kirin Holdings 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 Kirin Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq Inc and Kirin Holdings, you can compare the effects of market volatilities on Nasdaq and Kirin Holdings 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 Kirin Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and Kirin Holdings.
Diversification Opportunities for Nasdaq and Kirin Holdings
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nasdaq and Kirin is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc and Kirin Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kirin Holdings 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 Kirin Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kirin Holdings has no effect on the direction of Nasdaq i.e., Nasdaq and Kirin Holdings go up and down completely randomly.
Pair Corralation between Nasdaq and Kirin Holdings
Given the investment horizon of 90 days Nasdaq is expected to generate 3.39 times less return on investment than Kirin Holdings. But when comparing it to its historical volatility, Nasdaq Inc is 1.02 times less risky than Kirin Holdings. It trades about 0.01 of its potential returns per unit of risk. Kirin Holdings is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,230 in Kirin Holdings on December 28, 2024 and sell it today you would earn a total of 40.00 from holding Kirin Holdings or generate 3.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 96.77% |
Values | Daily Returns |
Nasdaq Inc vs. Kirin Holdings
Performance |
Timeline |
Nasdaq Inc |
Kirin Holdings |
Nasdaq and Kirin Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nasdaq and Kirin Holdings
The main advantage of trading using opposite Nasdaq and Kirin Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq position performs unexpectedly, Kirin Holdings 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 Kirin Holdings will offset losses from the drop in Kirin Holdings' long position.The idea behind Nasdaq Inc and Kirin Holdings 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.Kirin Holdings vs. MOVIE GAMES SA | Kirin Holdings vs. BRAGG GAMING GRP | Kirin Holdings vs. TROPHY GAMES DEV | Kirin Holdings vs. GAMES OPERATORS SA |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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