Correlation Between Nasdaq 100 and Lsv Emerging
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 and Lsv Emerging 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 Nasdaq 100 and Lsv Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 Profund Nasdaq 100 and Lsv Emerging Markets, you can compare the effects of market volatilities on Nasdaq 100 and Lsv Emerging 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 Nasdaq 100 with a short position of Lsv Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and Lsv Emerging.
Diversification Opportunities for Nasdaq 100 and Lsv Emerging
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nasdaq and Lsv is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 Profund Nasdaq 100 and Lsv Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lsv Emerging Markets and Nasdaq 100 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 Nasdaq 100 Profund Nasdaq 100 are associated (or correlated) with Lsv Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lsv Emerging Markets has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and Lsv Emerging go up and down completely randomly.
Pair Corralation between Nasdaq 100 and Lsv Emerging
Assuming the 90 days horizon Nasdaq 100 Profund Nasdaq 100 is expected to generate 1.34 times more return on investment than Lsv Emerging. However, Nasdaq 100 is 1.34 times more volatile than Lsv Emerging Markets. It trades about 0.09 of its potential returns per unit of risk. Lsv Emerging Markets is currently generating about -0.07 per unit of risk. If you would invest 4,266 in Nasdaq 100 Profund Nasdaq 100 on October 24, 2024 and sell it today you would earn a total of 326.00 from holding Nasdaq 100 Profund Nasdaq 100 or generate 7.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq 100 Profund Nasdaq 100 vs. Lsv Emerging Markets
Performance |
| Timeline |
| Nasdaq 100 Profund |
| Lsv Emerging Markets |
Nasdaq 100 and Lsv Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq 100 and Lsv Emerging
The main advantage of trading using opposite Nasdaq 100 and Lsv Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 position performs unexpectedly, Lsv Emerging 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 Lsv Emerging will offset losses from the drop in Lsv Emerging's long position.| Nasdaq 100 vs. Bull Profund Investor | Nasdaq 100 vs. Small Cap Profund Small Cap | Nasdaq 100 vs. Mid Cap Profund Mid Cap | Nasdaq 100 vs. Small Cap Growth Profund |
| Lsv Emerging vs. Shelton Funds | Lsv Emerging vs. Nasdaq 100 Profund Nasdaq 100 | Lsv Emerging vs. Rbb Fund | Lsv Emerging vs. T Rowe Price |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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