Correlation Between Belite Bio and Nasdaq 100
Can any of the company-specific risk be diversified away by investing in both Belite Bio and Nasdaq 100 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 Belite Bio and Nasdaq 100 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Belite Bio ADR and Nasdaq 100, you can compare the effects of market volatilities on Belite Bio and Nasdaq 100 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 Belite Bio with a short position of Nasdaq 100. Check out your portfolio center. Please also check ongoing floating volatility patterns of Belite Bio and Nasdaq 100.
Diversification Opportunities for Belite Bio and Nasdaq 100
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Belite and Nasdaq is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Belite Bio ADR and Nasdaq 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq 100 and Belite Bio 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 Belite Bio ADR are associated (or correlated) with Nasdaq 100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq 100 has no effect on the direction of Belite Bio i.e., Belite Bio and Nasdaq 100 go up and down completely randomly.
Pair Corralation between Belite Bio and Nasdaq 100
Given the investment horizon of 90 days Belite Bio is expected to generate 4.17 times less return on investment than Nasdaq 100. In addition to that, Belite Bio is 3.17 times more volatile than Nasdaq 100. It trades about 0.0 of its total potential returns per unit of risk. Nasdaq 100 is currently generating about 0.05 per unit of volatility. If you would invest 2,125,850 in Nasdaq 100 on November 27, 2024 and sell it today you would earn a total of 18,075 from holding Nasdaq 100 or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Belite Bio ADR vs. Nasdaq 100
Performance |
| Timeline |
| Belite Bio ADR |
| Nasdaq 100 |
Belite Bio and Nasdaq 100 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Belite Bio and Nasdaq 100
The main advantage of trading using opposite Belite Bio and Nasdaq 100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Belite Bio position performs unexpectedly, Nasdaq 100 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 Nasdaq 100 will offset losses from the drop in Nasdaq 100's long position.| Belite Bio vs. Anebulo Pharmaceuticals | Belite Bio vs. Mineralys Therapeutics, Common | Belite Bio vs. AN2 Therapeutics | Belite Bio vs. Aerovate Therapeutics |
| Nasdaq 100 vs. Gold Futures | Nasdaq 100 vs. 30 Year Treasury | Nasdaq 100 vs. 10 Year T Note Futures | Nasdaq 100 vs. Micro E mini Russell |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |