Correlation Between Nasdaq 100 and Asg Global
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 and Asg Global 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 Asg Global 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 Asg Global Alternatives, you can compare the effects of market volatilities on Nasdaq 100 and Asg Global 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 Asg Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and Asg Global.
Diversification Opportunities for Nasdaq 100 and Asg Global
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nasdaq and Asg is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 2x Strategy and Asg Global Alternatives in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asg Global Alternatives 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 Asg Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asg Global Alternatives has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and Asg Global go up and down completely randomly.
Pair Corralation between Nasdaq 100 and Asg Global
Assuming the 90 days horizon Nasdaq 100 2x Strategy is expected to generate 5.26 times more return on investment than Asg Global. However, Nasdaq 100 is 5.26 times more volatile than Asg Global Alternatives. It trades about 0.09 of its potential returns per unit of risk. Asg Global Alternatives is currently generating about 0.11 per unit of risk. If you would invest 27,642 in Nasdaq 100 2x Strategy on September 4, 2024 and sell it today you would earn a total of 15,006 from holding Nasdaq 100 2x Strategy or generate 54.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq 100 2x Strategy vs. Asg Global Alternatives
Performance |
| Timeline |
| Nasdaq 100 2x |
| Asg Global Alternatives |
Nasdaq 100 and Asg Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq 100 and Asg Global
The main advantage of trading using opposite Nasdaq 100 and Asg Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 position performs unexpectedly, Asg Global 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 Asg Global will offset losses from the drop in Asg Global's long position.| Nasdaq 100 vs. L Abbett Growth | Nasdaq 100 vs. Pace Smallmedium Growth | Nasdaq 100 vs. William Blair Growth | Nasdaq 100 vs. Artisan Small Cap |
| Asg Global vs. Asg Managed Futures | Asg Global vs. Asg Managed Futures | Asg Global vs. Natixis Oakmark | Asg Global vs. Natixis Oakmark 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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