Nasdaq 100 Correlations

NQUSD Commodity

19,753 256.50 1.32%

The current 90-days correlation between Nasdaq 100 and Heating Oil is 0.07 (i.e., Significant diversification). The correlation of Nasdaq 100 is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Nasdaq 100 Correlation With Market

Very good diversification

The correlation between Nasdaq 100 and DJI is -0.34 (i.e., Very good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to Nasdaq 100 could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Nasdaq 100 when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Nasdaq 100 - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Nasdaq 100 to buy it.

Moving together with Nasdaq Commodity

0.62	NVDA	NVIDIA	Pair Corr
0.73	AMZN	Amazon Inc	Pair Corr
0.64	GOOG	Alphabet Class C	Pair Corr

Moving against Nasdaq Commodity

0.6	BRK-B	Berkshire Hathaway	Pair Corr
0.48	DNCVF	Defiance Silver Corp	Pair Corr
0.47	TCTZF	Tencent Holdings	Pair Corr
0.44	CDUAF	Canadian Utilities	Pair Corr
0.41	CBYDF	Corby Spirit	Pair Corr
0.39	BMYMP	Bristol Myers Squibb	Pair Corr
0.38	FWEDF	Fireweed Zinc	Pair Corr
0.64	MSPHX	Massmutual Select Total	Pair Corr
0.55	GORO	Gold Resource	Pair Corr
0.55	SNGYX	Sit Government Securities	Pair Corr
0.49	PDINX	Putnam Diversified Income	Pair Corr
0.44	UTDIX	My529 International Value	Pair Corr
0.38	INVX	Innovex International, Symbol Change	Pair Corr
0.38	TEDPX	Tiaa Cref Emerging	Pair Corr
0.35	XSWZX	Swiss Helvetia	Pair Corr

Related Correlations Analysis

	HOUSD	ZQUSD	YMUSD	LBUSD	HEUSX	CLUSD	ESUSD
HOUSD		-0.05	0.61	-0.56	-0.18	0.87	0.66	HOUSD
ZQUSD	-0.05		-0.09	-0.16	-0.27	-0.01	-0.08	ZQUSD
YMUSD	0.61	-0.09		-0.44	0.14	0.4	0.9	YMUSD
LBUSD	-0.56	-0.16	-0.44		0.5	-0.73	-0.6	LBUSD
HEUSX	-0.18	-0.27	0.14	0.5		-0.49	0.02	HEUSX
CLUSD	0.87	-0.01	0.4	-0.73	-0.49		0.56	CLUSD
ESUSD	0.66	-0.08	0.9	-0.6	0.02	0.56		ESUSD
	HOUSD	ZQUSD	YMUSD	LBUSD	HEUSX	CLUSD	ESUSD

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

ESUSD	+ 0.9	YMUSD
CLUSD	+ 0.87	HOUSD
ESUSD	+ 0.66	HOUSD
YMUSD	+ 0.61	HOUSD
ESUSD	+ 0.56	CLUSD
HEUSX	+ 0.5	LBUSD

High negative correlations

CLUSD	- 0.73	LBUSD
ESUSD	- 0.6	LBUSD
LBUSD	- 0.56	HOUSD
CLUSD	- 0.49	HEUSX
LBUSD	- 0.44	YMUSD
HEUSX	- 0.27	ZQUSD

Risk-Adjusted Indicators

There is a big difference between Nasdaq Commodity performing well and Nasdaq 100 Commodity doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Nasdaq 100's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
HOUSD	1.18	(0.02)	0.04	0.02	1.47	(1.36)	2.50	(2.39)	8.17
ZQUSD	0.00	(0.01)	4.65	(10.00)	0.01	(0.01)	0.01	(0.01)	0.05
YMUSD	0.63	(0.05)	0.00	0.39	0.00	0.00	1.24	(1.51)	3.75
LBUSD	1.37	0.23	0.20	(1.99)	1.43	(1.59)	3.59	(1.95)	11.20
HEUSX	1.05	0.01	0.04	(0.03)	1.50	(1.11)	2.30	(2.31)	8.52
CLUSD	1.16	(0.08)	0.00	0.12	0.00	0.00	2.52	(2.50)	6.58
ESUSD	0.74	(0.10)	0.00	0.31	0.00	0.00	1.23	(1.72)	4.50

Nasdaq 100 Related Commodities

One prevalent trading approach among algorithmic traders in the commodities sector involves employing market-neutral strategies, wherein each trade is designed to hedge away specific risks. Given that this approach necessitates two distinct transactions, if one position underperforms unexpectedly, the other can potentially offset some of the losses. This method can be applied to commodities such as Nasdaq 100, pairing it with other commodities or financial instruments to create a balanced, market-neutral setup.

Heating Oil 30 Day Fed Mini Dow Jones Lumber Futures Lean Hogs Futures Crude Oil E Mini SP 500

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