Correlation Between NVIDIA and HUB24

Can any of the company-specific risk be diversified away by investing in both NVIDIA and HUB24 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 NVIDIA and HUB24 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NVIDIA and HUB24, you can compare the effects of market volatilities on NVIDIA and HUB24 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 NVIDIA with a short position of HUB24. Check out your portfolio center. Please also check ongoing floating volatility patterns of NVIDIA and HUB24.

Diversification Opportunities for NVIDIA and HUB24

0.0

Correlation Coefficient

NVIDIA  HUB24

Pay attention - limited upside

The 3 months correlation between NVIDIA and HUB24 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NVIDIA and HUB24 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUB24 and NVIDIA 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 NVIDIA are associated (or correlated) with HUB24. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUB24 has no effect on the direction of NVIDIA i.e., NVIDIA and HUB24 go up and down completely randomly.

Pair Corralation between NVIDIA and HUB24

If you would invest (100.00) in HUB24 on December 21, 2024 and sell it today you would earn a total of  100.00  from holding HUB24 or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

NVIDIA  vs.  HUB24

NVIDIA

Risk-Adjusted Performance

Very Weak

Over the last 90 days NVIDIA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

HUB24

Risk-Adjusted Performance

Very Weak

Over the last 90 days HUB24 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, HUB24 is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with NVIDIA and HUB24

The main advantage of trading using opposite NVIDIA and HUB24 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NVIDIA position performs unexpectedly, HUB24 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 HUB24 will offset losses from the drop in HUB24's long position.

The idea behind NVIDIA and HUB24 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.