Correlation Between Ultra Nasdaq-100 and Europe 125x
Can any of the company-specific risk be diversified away by investing in both Ultra Nasdaq-100 and Europe 125x 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 Ultra Nasdaq-100 and Europe 125x into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ultra Nasdaq 100 Profunds and Europe 125x Strategy, you can compare the effects of market volatilities on Ultra Nasdaq-100 and Europe 125x 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 Ultra Nasdaq-100 with a short position of Europe 125x. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultra Nasdaq-100 and Europe 125x.
Diversification Opportunities for Ultra Nasdaq-100 and Europe 125x
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ultra and Europe is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Ultra Nasdaq 100 Profunds and Europe 125x Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Europe 125x Strategy and Ultra Nasdaq-100 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 Ultra Nasdaq 100 Profunds are associated (or correlated) with Europe 125x. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Europe 125x Strategy has no effect on the direction of Ultra Nasdaq-100 i.e., Ultra Nasdaq-100 and Europe 125x go up and down completely randomly.
Pair Corralation between Ultra Nasdaq-100 and Europe 125x
Assuming the 90 days horizon Ultra Nasdaq 100 Profunds is expected to generate 2.19 times more return on investment than Europe 125x. However, Ultra Nasdaq-100 is 2.19 times more volatile than Europe 125x Strategy. It trades about 0.09 of its potential returns per unit of risk. Europe 125x Strategy is currently generating about 0.03 per unit of risk. If you would invest 4,646 in Ultra Nasdaq 100 Profunds on September 3, 2024 and sell it today you would earn a total of 6,617 from holding Ultra Nasdaq 100 Profunds or generate 142.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ultra Nasdaq 100 Profunds vs. Europe 125x Strategy
Performance |
| Timeline |
| Ultra Nasdaq 100 |
| Europe 125x Strategy |
Ultra Nasdaq-100 and Europe 125x Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ultra Nasdaq-100 and Europe 125x
The main advantage of trading using opposite Ultra Nasdaq-100 and Europe 125x positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultra Nasdaq-100 position performs unexpectedly, Europe 125x 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 Europe 125x will offset losses from the drop in Europe 125x's long position.The idea behind Ultra Nasdaq 100 Profunds and Europe 125x Strategy pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Europe 125x vs. Ftfa Franklin Templeton Growth | Europe 125x vs. Qs Moderate Growth | Europe 125x vs. William Blair Growth | Europe 125x vs. Franklin Growth Opportunities |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |