Correlation Between Nasdaq 100 and First Investors
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 and First Investors 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 First Investors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 2x Strategy and First Investors Total, you can compare the effects of market volatilities on Nasdaq 100 and First Investors 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 First Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and First Investors.
Diversification Opportunities for Nasdaq 100 and First Investors
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nasdaq and First is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 2x Strategy and First Investors Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Investors Total 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 2x Strategy are associated (or correlated) with First Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Investors Total has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and First Investors go up and down completely randomly.
Pair Corralation between Nasdaq 100 and First Investors
If you would invest 1,377 in First Investors Total on October 22, 2024 and sell it today you would earn a total of 0.00 from holding First Investors Total or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Nasdaq 100 2x Strategy vs. First Investors Total
Performance |
| Timeline |
| Nasdaq 100 2x |
| First Investors Total |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nasdaq 100 and First Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq 100 and First Investors
The main advantage of trading using opposite Nasdaq 100 and First Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 position performs unexpectedly, First Investors 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 First Investors will offset losses from the drop in First Investors' long position.| Nasdaq 100 vs. American Century Etf | Nasdaq 100 vs. Queens Road Small | Nasdaq 100 vs. Fpa Queens Road | Nasdaq 100 vs. Applied Finance Explorer |
| First Investors vs. Putnam Diversified Income | First Investors vs. Guidepath Conservative Income | First Investors vs. Lord Abbett Diversified | First Investors vs. Fulcrum Diversified Absolute |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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