Correlation Between Nasdaq and CTP NV

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

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

Diversification Opportunities for Nasdaq and CTP NV

-0.82

Correlation Coefficient

Nasdaq  CTP NV

Pay attention - limited upside

The 3 months correlation between Nasdaq and CTP is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc and CTP NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTP NV 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 CTP NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTP NV has no effect on the direction of Nasdaq i.e., Nasdaq and CTP NV go up and down completely randomly.

Pair Corralation between Nasdaq and CTP NV

Given the investment horizon of 90 days Nasdaq is expected to generate 27.65 times less return on investment than CTP NV. But when comparing it to its historical volatility, Nasdaq Inc is 1.33 times less risky than CTP NV. It trades about 0.01 of its potential returns per unit of risk. CTP NV is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  1,444  in CTP NV on September 19, 2024 and sell it today you would earn a total of  68.00  from holding CTP NV or generate 4.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	95.45%
Values	Daily Returns

Nasdaq Inc  vs.  CTP NV

Nasdaq Inc

Risk-Adjusted Performance

9 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Nasdaq Inc are ranked lower than 9 (%) 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.

CTP NV

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Nasdaq and CTP NV

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

The idea behind Nasdaq Inc and CTP NV 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.