Correlation Between Nasdaq 100 and Ab Small
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 and Ab Small 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 Ab Small 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 Ab Small Cap, you can compare the effects of market volatilities on Nasdaq 100 and Ab Small 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 Ab Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and Ab Small.
Diversification Opportunities for Nasdaq 100 and Ab Small
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nasdaq and SCYVX is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 Profund Nasdaq 100 and Ab Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Small Cap 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 Ab Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Small Cap has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and Ab Small go up and down completely randomly.
Pair Corralation between Nasdaq 100 and Ab Small
Assuming the 90 days horizon Nasdaq 100 is expected to generate 13.85 times less return on investment than Ab Small. In addition to that, Nasdaq 100 is 1.2 times more volatile than Ab Small Cap. It trades about 0.01 of its total potential returns per unit of risk. Ab Small Cap is currently generating about 0.16 per unit of volatility. If you would invest 1,477 in Ab Small Cap on October 24, 2024 and sell it today you would earn a total of 42.00 from holding Ab Small Cap or generate 2.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq 100 Profund Nasdaq 100 vs. Ab Small Cap
Performance |
| Timeline |
| Nasdaq 100 Profund |
| Ab Small Cap |
Nasdaq 100 and Ab Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq 100 and Ab Small
The main advantage of trading using opposite Nasdaq 100 and Ab Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 position performs unexpectedly, Ab Small 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 Ab Small will offset losses from the drop in Ab Small'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 |
| Ab Small vs. Lord Abbett Affiliated | Ab Small vs. Prudential Jennison Small | Ab Small vs. Ab Discovery Value | Ab Small vs. Aquagold International |
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 Stocks Directory module to find actively traded stocks across global markets.
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