Correlation Between Nasdaq and Satyamitra Kemas

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

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

Diversification Opportunities for Nasdaq and Satyamitra Kemas

-0.84

Correlation Coefficient

Nasdaq  Satyamitra Kemas

Pay attention - limited upside

The 3 months correlation between Nasdaq and Satyamitra is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc and Satyamitra Kemas Lestari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satyamitra Kemas Lestari 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 Satyamitra Kemas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Satyamitra Kemas Lestari has no effect on the direction of Nasdaq i.e., Nasdaq and Satyamitra Kemas go up and down completely randomly.

Pair Corralation between Nasdaq and Satyamitra Kemas

Given the investment horizon of 90 days Nasdaq Inc is expected to generate 0.72 times more return on investment than Satyamitra Kemas. However, Nasdaq Inc is 1.38 times less risky than Satyamitra Kemas. It trades about 0.07 of its potential returns per unit of risk. Satyamitra Kemas Lestari is currently generating about -0.14 per unit of risk. If you would invest  7,407  in Nasdaq Inc on September 20, 2024 and sell it today you would earn a total of  340.00  from holding Nasdaq Inc or generate 4.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

Nasdaq Inc  vs.  Satyamitra Kemas Lestari

Nasdaq Inc

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Nasdaq Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Nasdaq is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Satyamitra Kemas Lestari

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Satyamitra Kemas Lestari has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Nasdaq and Satyamitra Kemas

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

The idea behind Nasdaq Inc and Satyamitra Kemas Lestari 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.