Correlation Between Capital Growth and Nasdaq-100 Index
Can any of the company-specific risk be diversified away by investing in both Capital Growth and Nasdaq-100 Index 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 Capital Growth and Nasdaq-100 Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital Growth Fund and Nasdaq 100 Index Fund, you can compare the effects of market volatilities on Capital Growth and Nasdaq-100 Index 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 Capital Growth with a short position of Nasdaq-100 Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Growth and Nasdaq-100 Index.
Diversification Opportunities for Capital Growth and Nasdaq-100 Index
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Capital and Nasdaq-100 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Capital Growth Fund and Nasdaq 100 Index Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq 100 Index and Capital Growth 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 Capital Growth Fund are associated (or correlated) with Nasdaq-100 Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq 100 Index has no effect on the direction of Capital Growth i.e., Capital Growth and Nasdaq-100 Index go up and down completely randomly.
Pair Corralation between Capital Growth and Nasdaq-100 Index
If you would invest 3,182 in Nasdaq 100 Index Fund on November 5, 2024 and sell it today you would earn a total of 2,103 from holding Nasdaq 100 Index Fund or generate 66.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.2% |
| Values | Daily Returns |
Capital Growth Fund vs. Nasdaq 100 Index Fund
Performance |
| Timeline |
| Capital Growth |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nasdaq 100 Index |
Capital Growth and Nasdaq-100 Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Growth and Nasdaq-100 Index
The main advantage of trading using opposite Capital Growth and Nasdaq-100 Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Growth position performs unexpectedly, Nasdaq-100 Index 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 Nasdaq-100 Index will offset losses from the drop in Nasdaq-100 Index's long position.| Capital Growth vs. Eip Growth And | Capital Growth vs. Scharf Global Opportunity | Capital Growth vs. Tax Managed Large Cap | Capital Growth vs. Intal High Relative |
| Nasdaq-100 Index vs. Enhanced Fixed Income | Nasdaq-100 Index vs. Aqr Long Short Equity | Nasdaq-100 Index vs. Gmo Global Equity | Nasdaq-100 Index vs. Us Vector Equity |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |