Correlation Between Nasdaq-100(r) and Eagle Mlp
Can any of the company-specific risk be diversified away by investing in both Nasdaq-100(r) and Eagle Mlp 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 Eagle Mlp 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 Eagle Mlp Strategy, you can compare the effects of market volatilities on Nasdaq-100(r) and Eagle Mlp 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 Eagle Mlp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq-100(r) and Eagle Mlp.
Diversification Opportunities for Nasdaq-100(r) and Eagle Mlp
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nasdaq-100(r) and Eagle is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 2x Strategy and Eagle Mlp Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Mlp Strategy 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 Eagle Mlp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Mlp Strategy has no effect on the direction of Nasdaq-100(r) i.e., Nasdaq-100(r) and Eagle Mlp go up and down completely randomly.
Pair Corralation between Nasdaq-100(r) and Eagle Mlp
Assuming the 90 days horizon Nasdaq-100(r) is expected to generate 7.87 times less return on investment than Eagle Mlp. In addition to that, Nasdaq-100(r) is 2.23 times more volatile than Eagle Mlp Strategy. It trades about 0.03 of its total potential returns per unit of risk. Eagle Mlp Strategy is currently generating about 0.61 per unit of volatility. If you would invest 974.00 in Eagle Mlp Strategy on August 30, 2024 and sell it today you would earn a total of 141.00 from holding Eagle Mlp Strategy or generate 14.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq 100 2x Strategy vs. Eagle Mlp Strategy
Performance |
| Timeline |
| Nasdaq 100 2x |
| Eagle Mlp Strategy |
Nasdaq-100(r) and Eagle Mlp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq-100(r) and Eagle Mlp
The main advantage of trading using opposite Nasdaq-100(r) and Eagle Mlp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq-100(r) position performs unexpectedly, Eagle Mlp 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 Eagle Mlp will offset losses from the drop in Eagle Mlp'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 |
| Eagle Mlp vs. Commodities Strategy Fund | Eagle Mlp vs. Shelton Emerging Markets | Eagle Mlp vs. Barings Emerging Markets | Eagle Mlp vs. Ep Emerging Markets |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |