Correlation Between NVIDIA and Stocksplus Fund

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

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

Diversification Opportunities for NVIDIA and Stocksplus Fund

0.62

Correlation Coefficient

NVIDIA  Stocksplus Fund

Poor diversification

The 3 months correlation between NVIDIA and Stocksplus is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding NVIDIA and Stocksplus Fund C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stocksplus Fund C 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 Stocksplus Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stocksplus Fund C has no effect on the direction of NVIDIA i.e., NVIDIA and Stocksplus Fund go up and down completely randomly.

Pair Corralation between NVIDIA and Stocksplus Fund

Given the investment horizon of 90 days NVIDIA is expected to generate 4.97 times more return on investment than Stocksplus Fund. However, NVIDIA is 4.97 times more volatile than Stocksplus Fund C. It trades about 0.25 of its potential returns per unit of risk. Stocksplus Fund C is currently generating about 0.43 per unit of risk. If you would invest  16,830  in NVIDIA on July 9, 2025 and sell it today you would earn a total of  1,724  from holding NVIDIA or generate 10.24% return on investment over 90 days.

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

NVIDIA  vs.  Stocksplus Fund C

NVIDIA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in NVIDIA are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting fundamental indicators, NVIDIA sustained solid returns over the last few months and may actually be approaching a breakup point.

Stocksplus Fund C

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Stocksplus Fund C are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Stocksplus Fund may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with NVIDIA and Stocksplus Fund

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

The idea behind NVIDIA and Stocksplus Fund C 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.