Correlation Between Nasdaq-100(r) and Bull Profund
Can any of the company-specific risk be diversified away by investing in both Nasdaq-100(r) and Bull Profund 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(r) and Bull Profund 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 Bull Profund Bull, you can compare the effects of market volatilities on Nasdaq-100(r) and Bull Profund 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(r) with a short position of Bull Profund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq-100(r) and Bull Profund.
Diversification Opportunities for Nasdaq-100(r) and Bull Profund
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nasdaq-100(r) and Bull is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 2x Strategy and Bull Profund Bull in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bull Profund Bull and Nasdaq-100(r) 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 Bull Profund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bull Profund Bull has no effect on the direction of Nasdaq-100(r) i.e., Nasdaq-100(r) and Bull Profund go up and down completely randomly.
Pair Corralation between Nasdaq-100(r) and Bull Profund
Assuming the 90 days horizon Nasdaq 100 2x Strategy is expected to generate 2.81 times more return on investment than Bull Profund. However, Nasdaq-100(r) is 2.81 times more volatile than Bull Profund Bull. It trades about 0.1 of its potential returns per unit of risk. Bull Profund Bull is currently generating about 0.09 per unit of risk. If you would invest 21,825 in Nasdaq 100 2x Strategy on September 2, 2024 and sell it today you would earn a total of 36,236 from holding Nasdaq 100 2x Strategy or generate 166.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq 100 2x Strategy vs. Bull Profund Bull
Performance |
| Timeline |
| Nasdaq 100 2x |
| Bull Profund Bull |
Nasdaq-100(r) and Bull Profund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq-100(r) and Bull Profund
The main advantage of trading using opposite Nasdaq-100(r) and Bull Profund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq-100(r) position performs unexpectedly, Bull Profund 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 Bull Profund will offset losses from the drop in Bull Profund's long position.| Nasdaq-100(r) vs. Nasdaq 100 2x Strategy | Nasdaq-100(r) vs. Direxion Monthly Nasdaq 100 | Nasdaq-100(r) vs. Ultranasdaq 100 Profund Ultranasdaq 100 | Nasdaq-100(r) vs. Nasdaq 100 2x Strategy |
| Bull Profund vs. Fidelity Series 1000 | Bull Profund vs. Fundamental Large Cap | Bull Profund vs. Dana Large Cap | Bull Profund vs. T Rowe Price |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |