Correlation Between Nasdaq 100 and Issachar Fund
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 and Issachar Fund 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 Issachar Fund 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 Issachar Fund Class, you can compare the effects of market volatilities on Nasdaq 100 and Issachar Fund 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 Issachar Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and Issachar Fund.
Diversification Opportunities for Nasdaq 100 and Issachar Fund
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nasdaq and Issachar is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 Profund Nasdaq 100 and Issachar Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Issachar Fund Class 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 Issachar Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Issachar Fund Class has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and Issachar Fund go up and down completely randomly.
Pair Corralation between Nasdaq 100 and Issachar Fund
Assuming the 90 days horizon Nasdaq 100 is expected to generate 20.09 times less return on investment than Issachar Fund. But when comparing it to its historical volatility, Nasdaq 100 Profund Nasdaq 100 is 1.22 times less risky than Issachar Fund. It trades about 0.01 of its potential returns per unit of risk. Issachar Fund Class is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,003 in Issachar Fund Class on October 24, 2024 and sell it today you would earn a total of 41.00 from holding Issachar Fund Class or generate 4.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq 100 Profund Nasdaq 100 vs. Issachar Fund Class
Performance |
| Timeline |
| Nasdaq 100 Profund |
| Issachar Fund Class |
Nasdaq 100 and Issachar Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq 100 and Issachar Fund
The main advantage of trading using opposite Nasdaq 100 and Issachar Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 position performs unexpectedly, Issachar Fund 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 Issachar Fund will offset losses from the drop in Issachar Fund's long position.| Nasdaq 100 vs. Bull Profund Bull | Nasdaq 100 vs. Nasdaq 100 Profund Nasdaq 100 | Nasdaq 100 vs. Ultranasdaq 100 Profund Ultranasdaq 100 | Nasdaq 100 vs. Small Cap Profund Small Cap |
| Issachar Fund vs. Fidelity Large Cap | Issachar Fund vs. Tiaa Cref Large Cap Value | Issachar Fund vs. Qs Large Cap | Issachar Fund vs. Guidemark Large Cap |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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