Correlation Between BetaPro NASDAQ and CI MidCap
Can any of the company-specific risk be diversified away by investing in both BetaPro NASDAQ and CI MidCap 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 CI MidCap 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 CI MidCap Dividend, you can compare the effects of market volatilities on BetaPro NASDAQ and CI MidCap 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 CI MidCap. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro NASDAQ and CI MidCap.
Diversification Opportunities for BetaPro NASDAQ and CI MidCap
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between BetaPro and UMI is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro NASDAQ 100 2x and CI MidCap Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI MidCap Dividend 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 CI MidCap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI MidCap Dividend has no effect on the direction of BetaPro NASDAQ i.e., BetaPro NASDAQ and CI MidCap go up and down completely randomly.
Pair Corralation between BetaPro NASDAQ and CI MidCap
Assuming the 90 days trading horizon BetaPro NASDAQ 100 2x is expected to generate 2.17 times more return on investment than CI MidCap. However, BetaPro NASDAQ is 2.17 times more volatile than CI MidCap Dividend. It trades about 0.02 of its potential returns per unit of risk. CI MidCap Dividend is currently generating about -0.16 per unit of risk. If you would invest 1,033 in BetaPro NASDAQ 100 2x on November 28, 2024 and sell it today you would earn a total of 6.00 from holding BetaPro NASDAQ 100 2x or generate 0.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BetaPro NASDAQ 100 2x vs. CI MidCap Dividend
Performance |
| Timeline |
| BetaPro NASDAQ 100 |
| CI MidCap Dividend |
BetaPro NASDAQ and CI MidCap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BetaPro NASDAQ and CI MidCap
The main advantage of trading using opposite BetaPro NASDAQ and CI MidCap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BetaPro NASDAQ position performs unexpectedly, CI MidCap 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 CI MidCap will offset losses from the drop in CI MidCap'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 |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Stocks Directory Find actively traded stocks across global markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |