Correlation Between Conquer Risk and Nasdaq-100(r)
Can any of the company-specific risk be diversified away by investing in both Conquer Risk and Nasdaq-100(r) 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 Conquer Risk and Nasdaq-100(r) into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Conquer Risk Tactical and Nasdaq 100 2x Strategy, you can compare the effects of market volatilities on Conquer Risk and Nasdaq-100(r) 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 Conquer Risk with a short position of Nasdaq-100(r). Check out your portfolio center. Please also check ongoing floating volatility patterns of Conquer Risk and Nasdaq-100(r).
Diversification Opportunities for Conquer Risk and Nasdaq-100(r)
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Conquer and Nasdaq-100(r) is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Conquer Risk Tactical and Nasdaq 100 2x Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq 100 2x and Conquer Risk 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 Conquer Risk Tactical are associated (or correlated) with Nasdaq-100(r). 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 2x has no effect on the direction of Conquer Risk i.e., Conquer Risk and Nasdaq-100(r) go up and down completely randomly.
Pair Corralation between Conquer Risk and Nasdaq-100(r)
Assuming the 90 days horizon Conquer Risk Tactical is expected to generate 0.39 times more return on investment than Nasdaq-100(r). However, Conquer Risk Tactical is 2.58 times less risky than Nasdaq-100(r). It trades about 0.28 of its potential returns per unit of risk. Nasdaq 100 2x Strategy is currently generating about 0.07 per unit of risk. If you would invest 1,034 in Conquer Risk Tactical on August 31, 2024 and sell it today you would earn a total of 56.00 from holding Conquer Risk Tactical or generate 5.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Conquer Risk Tactical vs. Nasdaq 100 2x Strategy
Performance |
| Timeline |
| Conquer Risk Tactical |
| Nasdaq 100 2x |
Conquer Risk and Nasdaq-100(r) Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Conquer Risk and Nasdaq-100(r)
The main advantage of trading using opposite Conquer Risk and Nasdaq-100(r) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Conquer Risk position performs unexpectedly, Nasdaq-100(r) 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(r) will offset losses from the drop in Nasdaq-100(r)'s long position.| Conquer Risk vs. Jpmorgan Equity Income | Conquer Risk vs. Calamos Global Equity | Conquer Risk vs. Ultra Short Fixed Income | Conquer Risk vs. Huber Capital Equity |
| Nasdaq-100(r) vs. Sp 500 2x | Nasdaq-100(r) vs. Inverse Nasdaq 100 2x | Nasdaq-100(r) vs. Inverse Sp 500 | Nasdaq-100(r) vs. Ultra Nasdaq 100 Profunds |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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