Nasdaq 100 is trading at 20849.75 as of the 25th of November 2024, a 0.1% up since the beginning of the trading day. The commodity's lowest day price was 20693.25. The performance ratings for Nasdaq 100 are calculated daily based on our scoring framework. The performance scores are derived for the period starting the 4th of June 2023 and ending today, the 25th of November 2024. Click here to learn more.
In the context of commodities, the Nasdaq market risk premium refers to the extra return investors expect from holding Nasdaq 100 as part of a well-diversified portfolio. This premium is integral to the Capital Asset Pricing Model (CAPM), a framework widely employed by analysts and investors to determine the acceptable rate of return for investing in Nasdaq. At the heart of the CAPM lies the interplay between risk and reward, often articulated through the metrics of alpha and beta. In the Nasdaq market, alpha and beta serve as critical indicators for assessing Nasdaq 100's performance relative to broader market movements. Nonetheless, conventional measures of volatility also play a pivotal role, providing additional insights into the market's fluctuations and investment risk associated with Nasdaq 100.
One prevalent trading approach among algorithmic traders in the commodities sector involves employing market-neutral strategies, wherein each trade is designed to hedge away specific risks. Given that this approach necessitates two distinct transactions, if one position underperforms unexpectedly, the other can potentially offset some of the losses. This method can be applied to commodities such as Nasdaq 100, pairing it with other commodities or financial instruments to create a balanced, market-neutral setup.