Correlation Between Kellner Merger and Nasdaq 100
Can any of the company-specific risk be diversified away by investing in both Kellner Merger 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 Kellner Merger and Nasdaq 100 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kellner Merger Fund and Nasdaq 100 Index Fund, you can compare the effects of market volatilities on Kellner Merger 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 Kellner Merger with a short position of Nasdaq 100. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kellner Merger and Nasdaq 100.
Diversification Opportunities for Kellner Merger and Nasdaq 100
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kellner and Nasdaq is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Kellner Merger Fund and Nasdaq 100 Index Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq 100 Index and Kellner Merger 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 Kellner Merger Fund 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 Index has no effect on the direction of Kellner Merger i.e., Kellner Merger and Nasdaq 100 go up and down completely randomly.
Pair Corralation between Kellner Merger and Nasdaq 100
Assuming the 90 days horizon Kellner Merger Fund is expected to under-perform the Nasdaq 100. But the mutual fund apears to be less risky and, when comparing its historical volatility, Kellner Merger Fund is 9.94 times less risky than Nasdaq 100. The mutual fund trades about -0.05 of its potential returns per unit of risk. The Nasdaq 100 Index Fund is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 5,295 in Nasdaq 100 Index Fund on September 13, 2024 and sell it today you would earn a total of 179.00 from holding Nasdaq 100 Index Fund or generate 3.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kellner Merger Fund vs. Nasdaq 100 Index Fund
Performance |
| Timeline |
| Kellner Merger |
| Nasdaq 100 Index |
Kellner Merger and Nasdaq 100 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kellner Merger and Nasdaq 100
The main advantage of trading using opposite Kellner Merger and Nasdaq 100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kellner Merger 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.| Kellner Merger vs. Nasdaq 100 Index Fund | Kellner Merger vs. Commonwealth Global Fund | Kellner Merger vs. Commodities Strategy Fund | Kellner Merger vs. Balanced Fund Investor |
| Nasdaq 100 vs. Capital Growth Fund | Nasdaq 100 vs. Emerging Markets Fund | Nasdaq 100 vs. High Income Fund | Nasdaq 100 vs. International Fund International |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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