Correlation Between BetaPro NASDAQ and Picton Mahoney
Can any of the company-specific risk be diversified away by investing in both BetaPro NASDAQ and Picton Mahoney 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 Picton Mahoney 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 Picton Mahoney Fortified, you can compare the effects of market volatilities on BetaPro NASDAQ and Picton Mahoney 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 Picton Mahoney. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro NASDAQ and Picton Mahoney.
Diversification Opportunities for BetaPro NASDAQ and Picton Mahoney
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BetaPro and Picton is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro NASDAQ 100 2x and Picton Mahoney Fortified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Picton Mahoney Fortified 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 Picton Mahoney. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Picton Mahoney Fortified has no effect on the direction of BetaPro NASDAQ i.e., BetaPro NASDAQ and Picton Mahoney go up and down completely randomly.
Pair Corralation between BetaPro NASDAQ and Picton Mahoney
Assuming the 90 days trading horizon BetaPro NASDAQ 100 2x is expected to under-perform the Picton Mahoney. In addition to that, BetaPro NASDAQ is 2.8 times more volatile than Picton Mahoney Fortified. It trades about -0.14 of its total potential returns per unit of risk. Picton Mahoney Fortified is currently generating about 0.17 per unit of volatility. If you would invest 1,748 in Picton Mahoney Fortified on September 3, 2024 and sell it today you would earn a total of 142.00 from holding Picton Mahoney Fortified or generate 8.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BetaPro NASDAQ 100 2x vs. Picton Mahoney Fortified
Performance |
| Timeline |
| BetaPro NASDAQ 100 |
| Picton Mahoney Fortified |
BetaPro NASDAQ and Picton Mahoney Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BetaPro NASDAQ and Picton Mahoney
The main advantage of trading using opposite BetaPro NASDAQ and Picton Mahoney positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BetaPro NASDAQ position performs unexpectedly, Picton Mahoney 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 Picton Mahoney will offset losses from the drop in Picton Mahoney'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 |
| Picton Mahoney vs. Global X Active | Picton Mahoney vs. Global X Active | Picton Mahoney vs. Global X Active | Picton Mahoney vs. Global X Active |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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