Correlation Between Usaa Nasdaq and International Fund
Can any of the company-specific risk be diversified away by investing in both Usaa Nasdaq and International Fund 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 International Fund 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 International Fund International, you can compare the effects of market volatilities on Usaa Nasdaq and International Fund 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 International Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Usaa Nasdaq and International Fund.
Diversification Opportunities for Usaa Nasdaq and International Fund
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Usaa and International is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Usaa Nasdaq 100 and International Fund Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Fund 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 International Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Fund has no effect on the direction of Usaa Nasdaq i.e., Usaa Nasdaq and International Fund go up and down completely randomly.
Pair Corralation between Usaa Nasdaq and International Fund
Assuming the 90 days horizon Usaa Nasdaq 100 is expected to generate 1.43 times more return on investment than International Fund. However, Usaa Nasdaq is 1.43 times more volatile than International Fund International. It trades about 0.1 of its potential returns per unit of risk. International Fund International is currently generating about 0.05 per unit of risk. If you would invest 3,106 in Usaa Nasdaq 100 on August 26, 2024 and sell it today you would earn a total of 2,106 from holding Usaa Nasdaq 100 or generate 67.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Usaa Nasdaq 100 vs. International Fund Internation
Performance |
| Timeline |
| Usaa Nasdaq 100 |
| International Fund |
Usaa Nasdaq and International Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Usaa Nasdaq and International Fund
The main advantage of trading using opposite Usaa Nasdaq and International Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Usaa Nasdaq position performs unexpectedly, International Fund 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 International Fund will offset losses from the drop in International Fund's long position.| Usaa Nasdaq vs. International Fund International | Usaa Nasdaq vs. Small Cap Stock | Usaa Nasdaq vs. Income Stock Fund | Usaa Nasdaq vs. Emerging Markets Fund |
| International Fund vs. Victory Trivalent International | International Fund vs. Deutsche Global Real | International Fund vs. Jpmorgan Large Cap | International Fund vs. Amg River Road |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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