Correlation Between BetaPro NASDAQ and Fidelity Advantage
Can any of the company-specific risk be diversified away by investing in both BetaPro NASDAQ and Fidelity Advantage 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 BetaPro NASDAQ and Fidelity Advantage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BetaPro NASDAQ 100 2x and Fidelity Advantage Bitcoin, you can compare the effects of market volatilities on BetaPro NASDAQ and Fidelity Advantage 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 BetaPro NASDAQ with a short position of Fidelity Advantage. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro NASDAQ and Fidelity Advantage.
Diversification Opportunities for BetaPro NASDAQ and Fidelity Advantage
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BetaPro and Fidelity is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro NASDAQ 100 2x and Fidelity Advantage Bitcoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advantage and BetaPro NASDAQ 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 BetaPro NASDAQ 100 2x are associated (or correlated) with Fidelity Advantage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advantage has no effect on the direction of BetaPro NASDAQ i.e., BetaPro NASDAQ and Fidelity Advantage go up and down completely randomly.
Pair Corralation between BetaPro NASDAQ and Fidelity Advantage
Assuming the 90 days trading horizon BetaPro NASDAQ 100 2x is expected to generate 4.46 times more return on investment than Fidelity Advantage. However, BetaPro NASDAQ is 4.46 times more volatile than Fidelity Advantage Bitcoin. It trades about 0.03 of its potential returns per unit of risk. Fidelity Advantage Bitcoin is currently generating about 0.12 per unit of risk. If you would invest 808.00 in BetaPro NASDAQ 100 2x on September 4, 2024 and sell it today you would earn a total of 224.00 from holding BetaPro NASDAQ 100 2x or generate 27.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BetaPro NASDAQ 100 2x vs. Fidelity Advantage Bitcoin
Performance |
| Timeline |
| BetaPro NASDAQ 100 |
| Fidelity Advantage |
BetaPro NASDAQ and Fidelity Advantage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BetaPro NASDAQ and Fidelity Advantage
The main advantage of trading using opposite BetaPro NASDAQ and Fidelity Advantage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BetaPro NASDAQ position performs unexpectedly, Fidelity Advantage 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 Fidelity Advantage will offset losses from the drop in Fidelity Advantage's long position.| BetaPro NASDAQ vs. BetaPro SP 500 | BetaPro NASDAQ vs. BetaPro NASDAQ 100 2x | BetaPro NASDAQ vs. BetaPro SP 500 | BetaPro NASDAQ vs. BetaPro SPTSX 60 |
| Fidelity Advantage vs. Fidelity Global Value | Fidelity Advantage vs. Fidelity Momentum ETF | Fidelity Advantage vs. Fidelity Canadian High | Fidelity Advantage vs. Fidelity All in One Balanced |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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