Correlation Between BetaPro NASDAQ and Exemplar Growth
Can any of the company-specific risk be diversified away by investing in both BetaPro NASDAQ and Exemplar Growth 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 Exemplar Growth 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 Exemplar Growth and, you can compare the effects of market volatilities on BetaPro NASDAQ and Exemplar Growth 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 Exemplar Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro NASDAQ and Exemplar Growth.
Diversification Opportunities for BetaPro NASDAQ and Exemplar Growth
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BetaPro and Exemplar is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro NASDAQ 100 2x and Exemplar Growth and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exemplar Growth 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 Exemplar Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exemplar Growth has no effect on the direction of BetaPro NASDAQ i.e., BetaPro NASDAQ and Exemplar Growth go up and down completely randomly.
Pair Corralation between BetaPro NASDAQ and Exemplar Growth
Assuming the 90 days trading horizon BetaPro NASDAQ 100 2x is expected to generate 7.08 times more return on investment than Exemplar Growth. However, BetaPro NASDAQ is 7.08 times more volatile than Exemplar Growth and. It trades about 0.05 of its potential returns per unit of risk. Exemplar Growth and is currently generating about 0.24 per unit of risk. If you would invest 2,266 in BetaPro NASDAQ 100 2x on September 14, 2024 and sell it today you would earn a total of 267.00 from holding BetaPro NASDAQ 100 2x or generate 11.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.2% |
| Values | Daily Returns |
BetaPro NASDAQ 100 2x vs. Exemplar Growth and
Performance |
| Timeline |
| BetaPro NASDAQ 100 |
| Exemplar Growth |
BetaPro NASDAQ and Exemplar Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BetaPro NASDAQ and Exemplar Growth
The main advantage of trading using opposite BetaPro NASDAQ and Exemplar Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BetaPro NASDAQ position performs unexpectedly, Exemplar Growth 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 Exemplar Growth will offset losses from the drop in Exemplar Growth's long position.| BetaPro NASDAQ vs. BetaPro SP 500 | BetaPro NASDAQ vs. BetaPro NASDAQ 100 2x | BetaPro NASDAQ vs. BetaPro SP TSX | BetaPro NASDAQ vs. BetaPro SP 500 |
| Exemplar Growth vs. Purpose International Dividend | Exemplar Growth vs. Purpose Premium Yield | Exemplar Growth vs. Purpose Monthly Income | Exemplar Growth vs. Purpose Total Return |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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