Correlation Between Nasdaq 100 and Ab High
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 and Ab High 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 Ab High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 Fund Investor and Ab High Income, you can compare the effects of market volatilities on Nasdaq 100 and Ab High 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 Ab High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and Ab High.
Diversification Opportunities for Nasdaq 100 and Ab High
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nasdaq and AGDAX is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 Fund Investor and Ab High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab High Income 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 Fund Investor are associated (or correlated) with Ab High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab High Income has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and Ab High go up and down completely randomly.
Pair Corralation between Nasdaq 100 and Ab High
Assuming the 90 days horizon Nasdaq 100 Fund Investor is expected to under-perform the Ab High. In addition to that, Nasdaq 100 is 6.79 times more volatile than Ab High Income. It trades about -0.07 of its total potential returns per unit of risk. Ab High Income is currently generating about 0.1 per unit of volatility. If you would invest 689.00 in Ab High Income on December 28, 2024 and sell it today you would earn a total of 8.00 from holding Ab High Income or generate 1.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Nasdaq 100 Fund Investor vs. Ab High Income
Performance |
Timeline |
Nasdaq 100 Fund |
Ab High Income |
Nasdaq 100 and Ab High Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nasdaq 100 and Ab High
The main advantage of trading using opposite Nasdaq 100 and Ab High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 position performs unexpectedly, Ab High 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 Ab High will offset losses from the drop in Ab High's long position.Nasdaq 100 vs. Goldman Sachs Short | Nasdaq 100 vs. Intermediate Term Bond Fund | Nasdaq 100 vs. Ab Bond Inflation | Nasdaq 100 vs. Siit High Yield |
Ab High vs. Gabelli Global Financial | Ab High vs. Hewitt Money Market | Ab High vs. Davis Financial Fund | Ab High vs. Fidelity Government Money |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Stocks Directory Find actively traded stocks across global markets |