Correlation Between Nasdaq-100(r) and Scout Core
Can any of the company-specific risk be diversified away by investing in both Nasdaq-100(r) and Scout Core 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 Scout Core 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 Scout E Plus, you can compare the effects of market volatilities on Nasdaq-100(r) and Scout Core 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 Scout Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq-100(r) and Scout Core.
Diversification Opportunities for Nasdaq-100(r) and Scout Core
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nasdaq-100(r) and Scout is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 2x Strategy and Scout E Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scout E Plus 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 Scout Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scout E Plus has no effect on the direction of Nasdaq-100(r) i.e., Nasdaq-100(r) and Scout Core go up and down completely randomly.
Pair Corralation between Nasdaq-100(r) and Scout Core
If you would invest 48,645 in Nasdaq 100 2x Strategy on August 31, 2024 and sell it today you would earn a total of 8,423 from holding Nasdaq 100 2x Strategy or generate 17.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Nasdaq 100 2x Strategy vs. Scout E Plus
Performance |
| Timeline |
| Nasdaq 100 2x |
| Scout E Plus |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nasdaq-100(r) and Scout Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq-100(r) and Scout Core
The main advantage of trading using opposite Nasdaq-100(r) and Scout Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq-100(r) position performs unexpectedly, Scout Core 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 Scout Core will offset losses from the drop in Scout Core'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 |
| Scout Core vs. The Short Term | Scout Core vs. Jhancock Short Duration | Scout Core vs. Barings Active Short | Scout Core vs. Vanguard Institutional Short Term |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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