Correlation Between Nasdaq and Pergamon Status

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

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

Diversification Opportunities for Nasdaq and Pergamon Status

-0.79

Correlation Coefficient

Nasdaq  Pergamon Status

Pay attention - limited upside

The 3 months correlation between Nasdaq and Pergamon is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc and Pergamon Status Dis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pergamon Status Dis 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 Pergamon Status. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pergamon Status Dis has no effect on the direction of Nasdaq i.e., Nasdaq and Pergamon Status go up and down completely randomly.

Pair Corralation between Nasdaq and Pergamon Status

Given the investment horizon of 90 days Nasdaq Inc is expected to generate 0.31 times more return on investment than Pergamon Status. However, Nasdaq Inc is 3.22 times less risky than Pergamon Status. It trades about 0.14 of its potential returns per unit of risk. Pergamon Status Dis is currently generating about -0.1 per unit of risk. If you would invest  7,141  in Nasdaq Inc on October 11, 2024 and sell it today you would earn a total of  661.00  from holding Nasdaq Inc or generate 9.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

Nasdaq Inc  vs.  Pergamon Status Dis

Nasdaq Inc

Risk-Adjusted Performance

11 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Nasdaq Inc are ranked lower than 11 (%) 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 February 2025.

Pergamon Status Dis

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pergamon Status Dis has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Nasdaq and Pergamon Status

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

The idea behind Nasdaq Inc and Pergamon Status Dis 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.