Nasdaq 100 Correlations

VCNIX Fund

USD 27.89 0.25 0.90%

The current 90-days correlation between Nasdaq 100 Index and Mid Cap Index is 0.66 (i.e., Poor 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. If the correlation is 0, the equities are not correlated; they are entirely random.

Nasdaq 100 Correlation With Market

Poor diversification

The correlation between Nasdaq 100 Index Fund and DJI is 0.68 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 Index Fund and DJI in the same portfolio, assuming nothing else is changed.

Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Nasdaq 100 Index Fund. Also, note that the market value of any mutual fund could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product.

Moving together with Nasdaq Mutual Fund

0.92	VMIDX	Mid Cap Index	Pair Corr
0.92	VMSGX	Mid Cap Strategic	Pair Corr
0.99	VAPPX	Valic Company I	Pair Corr
0.98	VSRDX	Valic Company I	Pair Corr
0.99	VSTIX	Stock Index Fund	Pair Corr
0.84	VSSVX	Small Cap Special	Pair Corr
0.93	VBCVX	Broad Cap Value	Pair Corr
0.96	VCAAX	Asset Allocation	Pair Corr
0.99	VCBCX	Blue Chip Growth	Pair Corr
0.97	VCGAX	Growth Income	Pair Corr
0.9	VCIGX	Valic Company I	Pair Corr
0.99	VCSTX	Science Technology	Pair Corr
0.89	VCSLX	Small Cap Index	Pair Corr
1.0	VCULX	Growth Fund Growth	Pair Corr
0.89	VDAFX	Dynamic Allocation	Pair Corr
0.92	VVMCX	Valic Company I	Pair Corr
0.81	VVSGX	Valic Company I	Pair Corr
0.84	VVSCX	Valic Company I	Pair Corr
0.79	VGLSX	Global Strategy	Pair Corr
0.73	VHYLX	Valic Company I	Pair Corr
0.93	VLAGX	Valic Company I	Pair Corr
0.92	VLCGX	Large Capital Growth	Pair Corr
0.8	VLSMX	Valic Company I	Pair Corr
0.99	FAFGX	American Funds	Pair Corr
0.99	FFAFX	American Funds	Pair Corr
0.99	GFACX	Growth Fund	Pair Corr
0.99	GFAFX	Growth Fund	Pair Corr

Moving against Nasdaq Mutual Fund

0.76	VCGSX	Government Securities	Pair Corr
0.72	VCBDX	Valic Company I	Pair Corr
0.71	VCIFX	International Government	Pair Corr
0.67	VCTPX	Inflation Protected	Pair Corr
0.56	VCSOX	Global Social Awareness	Pair Corr
0.52	VCIEX	International Equities	Pair Corr
0.48	VCFVX	Foreign Value	Pair Corr
0.54	VIOPX	Valic Company I	Pair Corr
0.48	VGREX	Global Real Estate	Pair Corr

Related Correlations Analysis

	VMIDX	VMSGX	VSRDX	VSTIX	VSSVX	VBCVX	VCAAX	VCBDX
VMIDX		0.98	0.94	0.96	0.96	0.99	0.94	-0.64	VMIDX
VMSGX	0.98		0.95	0.96	0.93	0.98	0.94	-0.67	VMSGX
VSRDX	0.94	0.95		0.99	0.85	0.96	0.99	-0.67	VSRDX
VSTIX	0.96	0.96	0.99		0.88	0.97	0.98	-0.7	VSTIX
VSSVX	0.96	0.93	0.85	0.88		0.93	0.86	-0.58	VSSVX
VBCVX	0.99	0.98	0.96	0.97	0.93		0.95	-0.7	VBCVX
VCAAX	0.94	0.94	0.99	0.98	0.86	0.95		-0.58	VCAAX
VCBDX	-0.64	-0.67	-0.67	-0.7	-0.58	-0.7	-0.58		VCBDX
	VMIDX	VMSGX	VSRDX	VSTIX	VSSVX	VBCVX	VCAAX	VCBDX

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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

VBCVX	+ 0.99	VMIDX
VSTIX	+ 0.99	VSRDX
VCAAX	+ 0.99	VSRDX
VMSGX	+ 0.98	VMIDX
VBCVX	+ 0.98	VMSGX
VCAAX	+ 0.98	VSTIX

High negative correlations

VCBDX	- 0.7	VBCVX
VCBDX	- 0.7	VSTIX
VCBDX	- 0.67	VSRDX
VCBDX	- 0.67	VMSGX
VCBDX	- 0.64	VMIDX
VCBDX	- 0.58	VCAAX

Risk-Adjusted Indicators

There is a big difference between Nasdaq Mutual Fund performing well and Nasdaq 100 Mutual Fund 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
VMIDX	0.70	0.00	0.02	0.12	0.63	(0.75)	1.67	(1.19)	5.20
VMSGX	0.70	0.06	0.07	0.18	0.66	(0.78)	1.60	(1.17)	4.39
VSRDX	0.57	(0.01)	(0.04)	0.11	0.66	(0.61)	1.12	(1.39)	3.62
VSTIX	0.55	0.01	(0.02)	0.13	0.65	(0.59)	1.17	(1.31)	3.85
VSSVX	0.84	(0.05)	(0.01)	0.09	0.81	(0.97)	1.78	(1.23)	7.23
VBCVX	0.53	0.01	(0.02)	0.14	0.37	(0.62)	1.18	(0.88)	3.80
VCAAX	0.36	0.00	(0.11)	0.12	0.38	(0.41)	0.68	(0.84)	2.63
VCBDX	0.25	(0.01)	0.00	0.33	0.00	0.00	0.41	(0.61)	1.42

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