Correlation Between Nasdaq-100 Profund and Short Oil
Can any of the company-specific risk be diversified away by investing in both Nasdaq-100 Profund and Short Oil 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 Profund and Short Oil 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 Short Oil Gas, you can compare the effects of market volatilities on Nasdaq-100 Profund and Short Oil 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 Profund with a short position of Short Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq-100 Profund and Short Oil.
Diversification Opportunities for Nasdaq-100 Profund and Short Oil
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nasdaq-100 and Short is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 Profund Nasdaq 100 and Short Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Short Oil Gas and Nasdaq-100 Profund 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 Short Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Short Oil Gas has no effect on the direction of Nasdaq-100 Profund i.e., Nasdaq-100 Profund and Short Oil go up and down completely randomly.
Pair Corralation between Nasdaq-100 Profund and Short Oil
Assuming the 90 days horizon Nasdaq 100 Profund Nasdaq 100 is expected to generate 0.89 times more return on investment than Short Oil. However, Nasdaq 100 Profund Nasdaq 100 is 1.13 times less risky than Short Oil. It trades about 0.1 of its potential returns per unit of risk. Short Oil Gas is currently generating about -0.02 per unit of risk. If you would invest 2,555 in Nasdaq 100 Profund Nasdaq 100 on August 30, 2024 and sell it today you would earn a total of 1,903 from holding Nasdaq 100 Profund Nasdaq 100 or generate 74.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq 100 Profund Nasdaq 100 vs. Short Oil Gas
Performance |
| Timeline |
| Nasdaq 100 Profund |
| Short Oil Gas |
Nasdaq-100 Profund and Short Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq-100 Profund and Short Oil
The main advantage of trading using opposite Nasdaq-100 Profund and Short Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq-100 Profund position performs unexpectedly, Short Oil 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 Short Oil will offset losses from the drop in Short Oil's long position.| Nasdaq-100 Profund vs. Bull Profund Investor | Nasdaq-100 Profund vs. Small Cap Profund Small Cap | Nasdaq-100 Profund vs. Mid Cap Profund Mid Cap | Nasdaq-100 Profund vs. Small Cap Growth Profund |
| Short Oil vs. Short Real Estate | Short Oil vs. Short Real Estate | Short Oil vs. Ultrashort Mid Cap Profund | Short Oil vs. Ultrashort Mid Cap Profund |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |