Correlation Between BetaPro NASDAQ and TD Q
Can any of the company-specific risk be diversified away by investing in both BetaPro NASDAQ and TD Q 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 TD Q 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 TD Q Small Mid Cap, you can compare the effects of market volatilities on BetaPro NASDAQ and TD Q 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 TD Q. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro NASDAQ and TD Q.
Diversification Opportunities for BetaPro NASDAQ and TD Q
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BetaPro and TQSM is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro NASDAQ 100 2x and TD Q Small Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TD Q Small 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 TD Q. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TD Q Small has no effect on the direction of BetaPro NASDAQ i.e., BetaPro NASDAQ and TD Q go up and down completely randomly.
Pair Corralation between BetaPro NASDAQ and TD Q
Assuming the 90 days trading horizon BetaPro NASDAQ 100 2x is expected to generate 2.3 times more return on investment than TD Q. However, BetaPro NASDAQ is 2.3 times more volatile than TD Q Small Mid Cap. It trades about -0.04 of its potential returns per unit of risk. TD Q Small Mid Cap is currently generating about -0.1 per unit of risk. If you would invest 1,035 in BetaPro NASDAQ 100 2x on October 9, 2024 and sell it today you would lose (41.00) from holding BetaPro NASDAQ 100 2x or give up 3.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.5% |
| Values | Daily Returns |
BetaPro NASDAQ 100 2x vs. TD Q Small Mid Cap
Performance |
| Timeline |
| BetaPro NASDAQ 100 |
| TD Q Small |
BetaPro NASDAQ and TD Q Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BetaPro NASDAQ and TD Q
The main advantage of trading using opposite BetaPro NASDAQ and TD Q positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BetaPro NASDAQ position performs unexpectedly, TD Q 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 TD Q will offset losses from the drop in TD Q'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 |
| TD Q vs. iShares SPTSX 60 | TD Q vs. iShares Core SP | TD Q vs. iShares Core SPTSX | TD Q vs. BMO Aggregate Bond |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |