Correlation Between Mid-cap 15x and Nasdaq 100
Can any of the company-specific risk be diversified away by investing in both Mid-cap 15x and Nasdaq 100 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 Mid-cap 15x and Nasdaq 100 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mid Cap 15x Strategy and Nasdaq 100 Fund Class, you can compare the effects of market volatilities on Mid-cap 15x and Nasdaq 100 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 Mid-cap 15x with a short position of Nasdaq 100. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid-cap 15x and Nasdaq 100.
Diversification Opportunities for Mid-cap 15x and Nasdaq 100
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mid-cap and Nasdaq is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Mid Cap 15x Strategy and Nasdaq 100 Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq 100 Fund and Mid-cap 15x 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 Mid Cap 15x Strategy are associated (or correlated) with Nasdaq 100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq 100 Fund has no effect on the direction of Mid-cap 15x i.e., Mid-cap 15x and Nasdaq 100 go up and down completely randomly.
Pair Corralation between Mid-cap 15x and Nasdaq 100
Assuming the 90 days horizon Mid Cap 15x Strategy is expected to generate 0.9 times more return on investment than Nasdaq 100. However, Mid Cap 15x Strategy is 1.11 times less risky than Nasdaq 100. It trades about 0.29 of its potential returns per unit of risk. Nasdaq 100 Fund Class is currently generating about 0.07 per unit of risk. If you would invest 13,064 in Mid Cap 15x Strategy on October 20, 2024 and sell it today you would earn a total of 824.00 from holding Mid Cap 15x Strategy or generate 6.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Mid Cap 15x Strategy vs. Nasdaq 100 Fund Class
Performance |
| Timeline |
| Mid Cap 15x |
| Nasdaq 100 Fund |
Mid-cap 15x and Nasdaq 100 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mid-cap 15x and Nasdaq 100
The main advantage of trading using opposite Mid-cap 15x and Nasdaq 100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid-cap 15x position performs unexpectedly, Nasdaq 100 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 Nasdaq 100 will offset losses from the drop in Nasdaq 100's long position.| Mid-cap 15x vs. Small Cap Value | Mid-cap 15x vs. Queens Road Small | Mid-cap 15x vs. Mutual Of America | Mid-cap 15x vs. Ultrasmall Cap Profund Ultrasmall Cap |
| Nasdaq 100 vs. Nasdaq 100 2x Strategy | Nasdaq 100 vs. Nova Fund Class | Nasdaq 100 vs. Russell 2000 15x | Nasdaq 100 vs. Nasdaq 100 Fund Class |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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