Correlation Between Nasdaq 100 and 1290 Retirement
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 and 1290 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 Nasdaq 100 and 1290 Retirement 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 1290 Retirement 2035, you can compare the effects of market volatilities on Nasdaq 100 and 1290 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 Nasdaq 100 with a short position of 1290 Retirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and 1290 Retirement.
Diversification Opportunities for Nasdaq 100 and 1290 Retirement
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nasdaq and 1290 is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 Index Fund and 1290 Retirement 2035 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1290 Retirement 2035 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 1290 Retirement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1290 Retirement 2035 has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and 1290 Retirement go up and down completely randomly.
Pair Corralation between Nasdaq 100 and 1290 Retirement
Assuming the 90 days horizon Nasdaq 100 Index Fund is expected to generate 1.9 times more return on investment than 1290 Retirement. However, Nasdaq 100 is 1.9 times more volatile than 1290 Retirement 2035. It trades about 0.1 of its potential returns per unit of risk. 1290 Retirement 2035 is currently generating about 0.12 per unit of risk. If you would invest 4,088 in Nasdaq 100 Index Fund on September 14, 2024 and sell it today you would earn a total of 1,348 from holding Nasdaq 100 Index Fund or generate 32.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Nasdaq 100 Index Fund vs. 1290 Retirement 2035
Performance |
| Timeline |
| Nasdaq 100 Index |
| 1290 Retirement 2035 |
Nasdaq 100 and 1290 Retirement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq 100 and 1290 Retirement
The main advantage of trading using opposite Nasdaq 100 and 1290 Retirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 position performs unexpectedly, 1290 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 1290 Retirement will offset losses from the drop in 1290 Retirement's long position.| Nasdaq 100 vs. Qs Large Cap | Nasdaq 100 vs. Lord Abbett Affiliated | Nasdaq 100 vs. Dunham Large Cap | Nasdaq 100 vs. Dodge Cox Stock |
| 1290 Retirement vs. Issachar Fund Class | 1290 Retirement vs. Commonwealth Global Fund | 1290 Retirement vs. Multimedia Portfolio Multimedia | 1290 Retirement vs. Nasdaq 100 Index Fund |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |