Correlation Between Nasdaq 100 and Ancorathelen Small
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 and Ancorathelen Small 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 and Ancorathelen Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 Index Fund and Ancorathelen Small Mid Cap, you can compare the effects of market volatilities on Nasdaq 100 and Ancorathelen Small 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 with a short position of Ancorathelen Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and Ancorathelen Small.
Diversification Opportunities for Nasdaq 100 and Ancorathelen Small
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nasdaq and Ancorathelen is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 Index Fund and Ancorathelen Small Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ancorathelen Small Mid and 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 Nasdaq 100 Index Fund are associated (or correlated) with Ancorathelen Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ancorathelen Small Mid has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and Ancorathelen Small go up and down completely randomly.
Pair Corralation between Nasdaq 100 and Ancorathelen Small
Assuming the 90 days horizon Nasdaq 100 Index Fund is expected to generate 1.04 times more return on investment than Ancorathelen Small. However, Nasdaq 100 is 1.04 times more volatile than Ancorathelen Small Mid Cap. It trades about 0.18 of its potential returns per unit of risk. Ancorathelen Small Mid Cap is currently generating about 0.12 per unit of risk. If you would invest 5,295 in Nasdaq 100 Index Fund on September 13, 2024 and sell it today you would earn a total of 179.00 from holding Nasdaq 100 Index Fund or generate 3.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq 100 Index Fund vs. Ancorathelen Small Mid Cap
Performance |
| Timeline |
| Nasdaq 100 Index |
| Ancorathelen Small Mid |
Nasdaq 100 and Ancorathelen Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq 100 and Ancorathelen Small
The main advantage of trading using opposite Nasdaq 100 and Ancorathelen Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 position performs unexpectedly, Ancorathelen Small 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 Ancorathelen Small will offset losses from the drop in Ancorathelen Small's long position.| Nasdaq 100 vs. Capital Growth Fund | Nasdaq 100 vs. Emerging Markets Fund | Nasdaq 100 vs. High Income Fund | Nasdaq 100 vs. International Fund International |
| Ancorathelen Small vs. Huber Capital Diversified | Ancorathelen Small vs. Lord Abbett Diversified | Ancorathelen Small vs. Sentinel Small Pany | Ancorathelen Small vs. Tiaa Cref Small Cap Blend |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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