Correlation Between Nasdaq and Pelayaran Kurnia

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

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

Diversification Opportunities for Nasdaq and Pelayaran Kurnia

-0.07

Correlation Coefficient

Nasdaq  Pelayaran Kurnia

Good diversification

The 3 months correlation between Nasdaq and Pelayaran is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc and Pelayaran Kurnia Lautan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pelayaran Kurnia Lautan 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 Pelayaran Kurnia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pelayaran Kurnia Lautan has no effect on the direction of Nasdaq i.e., Nasdaq and Pelayaran Kurnia go up and down completely randomly.

Pair Corralation between Nasdaq and Pelayaran Kurnia

Given the investment horizon of 90 days Nasdaq is expected to generate 35.84 times less return on investment than Pelayaran Kurnia. But when comparing it to its historical volatility, Nasdaq Inc is 38.12 times less risky than Pelayaran Kurnia. It trades about 0.05 of its potential returns per unit of risk. Pelayaran Kurnia Lautan is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  10,975  in Pelayaran Kurnia Lautan on September 26, 2024 and sell it today you would lose (675.00) from holding Pelayaran Kurnia Lautan or give up 6.15% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	75.2%
Values	Daily Returns

Nasdaq Inc  vs.  Pelayaran Kurnia Lautan

Nasdaq Inc

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Nasdaq Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, Nasdaq may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pelayaran Kurnia Lautan

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pelayaran Kurnia Lautan has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Pelayaran Kurnia is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Nasdaq and Pelayaran Kurnia

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

The idea behind Nasdaq Inc and Pelayaran Kurnia Lautan 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.