Correlation Between Usaa Nasdaq and Target Retirement
Can any of the company-specific risk be diversified away by investing in both Usaa Nasdaq and Target Retirement 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 Usaa Nasdaq and Target Retirement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Usaa Nasdaq 100 and Target Retirement 2050, you can compare the effects of market volatilities on Usaa Nasdaq and Target Retirement 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 Usaa Nasdaq with a short position of Target Retirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Usaa Nasdaq and Target Retirement.
Diversification Opportunities for Usaa Nasdaq and Target Retirement
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Usaa and Target is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Usaa Nasdaq 100 and Target Retirement 2050 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Target Retirement 2050 and Usaa Nasdaq 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 Usaa Nasdaq 100 are associated (or correlated) with Target Retirement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Target Retirement 2050 has no effect on the direction of Usaa Nasdaq i.e., Usaa Nasdaq and Target Retirement go up and down completely randomly.
Pair Corralation between Usaa Nasdaq and Target Retirement
Assuming the 90 days horizon Usaa Nasdaq 100 is expected to generate 1.82 times more return on investment than Target Retirement. However, Usaa Nasdaq is 1.82 times more volatile than Target Retirement 2050. It trades about 0.12 of its potential returns per unit of risk. Target Retirement 2050 is currently generating about 0.12 per unit of risk. If you would invest 5,112 in Usaa Nasdaq 100 on August 29, 2024 and sell it today you would earn a total of 146.00 from holding Usaa Nasdaq 100 or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Usaa Nasdaq 100 vs. Target Retirement 2050
Performance |
| Timeline |
| Usaa Nasdaq 100 |
| Target Retirement 2050 |
Usaa Nasdaq and Target Retirement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Usaa Nasdaq and Target Retirement
The main advantage of trading using opposite Usaa Nasdaq and Target Retirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Usaa Nasdaq position performs unexpectedly, Target Retirement 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 Target Retirement will offset losses from the drop in Target Retirement's long position.| Usaa Nasdaq vs. Pgim Jennison Technology | Usaa Nasdaq vs. Allianzgi Technology Fund | Usaa Nasdaq vs. Fidelity Advisor Technology | Usaa Nasdaq vs. Invesco Technology Fund |
| Target Retirement vs. Touchstone Large Cap | Target Retirement vs. Qs Large Cap | Target Retirement vs. Transamerica Large Cap | Target Retirement vs. Dodge Cox Stock |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |