Correlation Between Nasdaq and Atreca

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

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

Diversification Opportunities for Nasdaq and Atreca

-0.15

Correlation Coefficient

Nasdaq  Atreca

Good diversification

The 3 months correlation between Nasdaq and Atreca is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc and Atreca Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atreca Inc 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 Atreca. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atreca Inc has no effect on the direction of Nasdaq i.e., Nasdaq and Atreca go up and down completely randomly.

Pair Corralation between Nasdaq and Atreca

Given the investment horizon of 90 days Nasdaq Inc is expected to under-perform the Atreca. But the stock apears to be less risky and, when comparing its historical volatility, Nasdaq Inc is 11.67 times less risky than Atreca. The stock trades about -0.04 of its potential returns per unit of risk. The Atreca Inc is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  6.20  in Atreca Inc on January 20, 2024 and sell it today you would earn a total of  0.90  from holding Atreca Inc or generate 14.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	22.73%
Values	Daily Returns

Nasdaq Inc  vs.  Atreca Inc

Nasdaq Inc

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Nasdaq Inc are ranked lower than 4 (%) 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.

Atreca Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Atreca Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in May 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Nasdaq and Atreca

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

The idea behind Nasdaq Inc and Atreca Inc 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.

Check out your portfolio center.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.