Six stocks in the S&P 500 have shown an inverse correlation to Nvidia's share price movements over the past month, according to a CNBC Pro analysis. The U.S.-listed companies include Kraft Heinz, State Street, Walgreens Boots Alliance, MasterCard, health care distributor Henry Schein, and automotive parts retailer O'Reilly Automotive. This comes as Nvidia entered correction territory this week, meaning it has dropped over 10% from its closing high of $148.88 reached last month.
CNBC Pro screened for S&P 500 stocks that have moved in the opposite direction to the U.S. chip giant over the past month. A negative 1 value in the correlation column indicates that as Nvidia's stock moves, either up or down, the share price of the listed company moves in the opposite direction. A correlation of 0 would suggest no statistical link between Nvidia's stock and the company's share price. It's important to note that correlated returns do not imply causation or predict future returns or price action patterns. The stocks could have moved higher (as Nvidia fell) for entirely unique reasons. The calculations only measure the direction and magnitude of daily price action. Over a longer period, the total returns of these inversely correlated stocks diverge. For example, over the past month, Kraft Heinz shares have also fallen 0.6%, alongside Nvidia's decline over the same period. CNBC Pro's analysis used the Pearson correlation coefficient, the most common method for measuring a linear correlation between two variables, or stock prices
Malaysia Malaysia Latest News, Malaysia Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: Investingcom - 🏆 450. / 53 Read more »
Source: Investingcom - 🏆 450. / 53 Read more »
Source: Investingcom - 🏆 450. / 53 Read more »
Source: CoinDesk - 🏆 291. / 63 Read more »