Correlation Between Ab Fixed and Nasdaq 100

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Can any of the company-specific risk be diversified away by investing in both Ab Fixed and Nasdaq 100 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 Ab Fixed and Nasdaq 100 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Fixed Income Shares and Nasdaq 100 2x Strategy, you can compare the effects of market volatilities on Ab Fixed and Nasdaq 100 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 Ab Fixed with a short position of Nasdaq 100. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Fixed and Nasdaq 100.

Diversification Opportunities for Ab Fixed and Nasdaq 100

AECXXNasdaqDiversified AwayAECXXNasdaqDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between AECXX and Nasdaq is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ab Fixed Income Shares and Nasdaq 100 2x Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq 100 2x and Ab Fixed 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 Ab Fixed Income Shares are associated (or correlated) with Nasdaq 100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq 100 2x has no effect on the direction of Ab Fixed i.e., Ab Fixed and Nasdaq 100 go up and down completely randomly.

Pair Corralation between Ab Fixed and Nasdaq 100

If you would invest  36,628  in Nasdaq 100 2x Strategy on September 15, 2024 and sell it today you would earn a total of  5,216  from holding Nasdaq 100 2x Strategy or generate 14.24% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy81.25%
ValuesDaily Returns

Ab Fixed Income Shares  vs.  Nasdaq 100 2x Strategy

 Performance 
JavaScript chart by amCharts 3.21.15OctNov 05101520
JavaScript chart by amCharts 3.21.15AECXX RYCCX
       Timeline  
Ab Fixed Income 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Ab Fixed Income Shares has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Ab Fixed is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15SepOctNovDecOctNovDec11.05
Nasdaq 100 2x 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Nasdaq 100 2x Strategy are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Nasdaq 100 showed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec380390400410420430440450

Ab Fixed and Nasdaq 100 Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15 0.020.040.060.08
JavaScript chart by amCharts 3.21.15AECXX RYCCX
       Returns  

Pair Trading with Ab Fixed and Nasdaq 100

The main advantage of trading using opposite Ab Fixed and Nasdaq 100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Fixed position performs unexpectedly, Nasdaq 100 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 Nasdaq 100 will offset losses from the drop in Nasdaq 100's long position.
The idea behind Ab Fixed Income Shares and Nasdaq 100 2x 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.
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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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