Correlation Between NVIDIA and Macquarie Global

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

By analyzing existing cross correlation between NVIDIA and Macquarie Global Infrastructure, you can compare the effects of market volatilities on NVIDIA and Macquarie Global 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 Macquarie Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of NVIDIA and Macquarie Global.

Diversification Opportunities for NVIDIA and Macquarie Global

0.08

Correlation Coefficient

NVIDIA  Macquarie Global

Significant diversification

The 3 months correlation between NVIDIA and Macquarie is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding NVIDIA and Macquarie Global Infrastructur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie Global Inf 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 Macquarie Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquarie Global Inf has no effect on the direction of NVIDIA i.e., NVIDIA and Macquarie Global go up and down completely randomly.

Pair Corralation between NVIDIA and Macquarie Global

If you would invest  4,661  in NVIDIA on October 5, 2024 and sell it today you would earn a total of  9,170  from holding NVIDIA or generate 196.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	0.37%
Values	Daily Returns

NVIDIA  vs.  Macquarie Global Infrastructur

NVIDIA

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in NVIDIA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady fundamental indicators, NVIDIA may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Macquarie Global Inf

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Macquarie Global Infrastructure has generated negative risk-adjusted returns adding no value to fund investors. In spite of comparatively stable technical and fundamental indicators, Macquarie Global is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with NVIDIA and Macquarie Global

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

The idea behind NVIDIA and Macquarie Global Infrastructure 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.