Correlation Between Nasdaq 100 and Saat Moderate

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 and Saat Moderate 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 Saat Moderate 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 Saat Moderate Strategy, you can compare the effects of market volatilities on Nasdaq 100 and Saat Moderate 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 Saat Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and Saat Moderate.

Diversification Opportunities for Nasdaq 100 and Saat Moderate

0.15
  Correlation Coefficient

Average diversification

The 3 months correlation between Nasdaq and Saat is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 Index Fund and Saat Moderate Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Moderate Strategy 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 Saat Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Moderate Strategy has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and Saat Moderate go up and down completely randomly.

Pair Corralation between Nasdaq 100 and Saat Moderate

Assuming the 90 days horizon Nasdaq 100 Index Fund is expected to generate 6.35 times more return on investment than Saat Moderate. However, Nasdaq 100 is 6.35 times more volatile than Saat Moderate Strategy. It trades about 0.15 of its potential returns per unit of risk. Saat Moderate Strategy is currently generating about 0.38 per unit of risk. If you would invest  5,286  in Nasdaq 100 Index Fund on September 14, 2024 and sell it today you would earn a total of  150.00  from holding Nasdaq 100 Index Fund or generate 2.84% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Nasdaq 100 Index Fund  vs.  Saat Moderate Strategy

 Performance 
       Timeline  
Nasdaq 100 Index 

Risk-Adjusted Performance

14 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Nasdaq 100 Index Fund are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Nasdaq 100 may actually be approaching a critical reversion point that can send shares even higher in January 2025.
Saat Moderate Strategy 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Saat Moderate Strategy are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Saat Moderate is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Nasdaq 100 and Saat Moderate Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Nasdaq 100 and Saat Moderate

The main advantage of trading using opposite Nasdaq 100 and Saat Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 position performs unexpectedly, Saat Moderate 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 Saat Moderate will offset losses from the drop in Saat Moderate's long position.
The idea behind Nasdaq 100 Index Fund and Saat Moderate 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.
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

Other Complementary Tools

Commodity Directory
Find actively traded commodities issued by global exchanges
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas