Correlation Between Ultranasdaq-100 Profund and Ultra Nasdaq-100

Can any of the company-specific risk be diversified away by investing in both Ultranasdaq-100 Profund and Ultra 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 Ultranasdaq-100 Profund and Ultra Nasdaq-100 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ultranasdaq 100 Profund Ultranasdaq 100 and Ultra Nasdaq 100 Profunds, you can compare the effects of market volatilities on Ultranasdaq-100 Profund and Ultra 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 Ultranasdaq-100 Profund with a short position of Ultra Nasdaq-100. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultranasdaq-100 Profund and Ultra Nasdaq-100.

Diversification Opportunities for Ultranasdaq-100 Profund and Ultra Nasdaq-100

1.0

Correlation Coefficient

Ultranasdaq-100 Profund  Ultra Nasdaq-100

No risk reduction

The 3 months correlation between Ultranasdaq-100 and Ultra is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Ultranasdaq 100 Profund Ultran and Ultra Nasdaq 100 Profunds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ultra Nasdaq 100 and Ultranasdaq-100 Profund 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 Ultranasdaq 100 Profund Ultranasdaq 100 are associated (or correlated) with Ultra 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 Ultra Nasdaq 100 has no effect on the direction of Ultranasdaq-100 Profund i.e., Ultranasdaq-100 Profund and Ultra Nasdaq-100 go up and down completely randomly.

Pair Corralation between Ultranasdaq-100 Profund and Ultra Nasdaq-100

Assuming the 90 days horizon Ultranasdaq 100 Profund Ultranasdaq 100 is expected to under-perform the Ultra Nasdaq-100. But the mutual fund apears to be less risky and, when comparing its historical volatility, Ultranasdaq 100 Profund Ultranasdaq 100 is 1.0 times less risky than Ultra Nasdaq-100. The mutual fund trades about -0.1 of its potential returns per unit of risk. The Ultra Nasdaq 100 Profunds is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest  11,454  in Ultra Nasdaq 100 Profunds on December 31, 2024 and sell it today you would lose (2,057) from holding Ultra Nasdaq 100 Profunds or give up 17.96% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Ultranasdaq 100 Profund Ultran  vs.  Ultra Nasdaq 100 Profunds

Ultranasdaq 100 Profund

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ultranasdaq 100 Profund Ultranasdaq 100 has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in May 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Ultra Nasdaq 100

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ultra Nasdaq 100 Profunds has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's forward indicators remain fairly strong which may send shares a bit higher in May 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Ultranasdaq-100 Profund and Ultra Nasdaq-100

The main advantage of trading using opposite Ultranasdaq-100 Profund and Ultra Nasdaq-100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultranasdaq-100 Profund position performs unexpectedly, Ultra 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 Ultra Nasdaq-100 will offset losses from the drop in Ultra Nasdaq-100's long position.

The idea behind Ultranasdaq 100 Profund Ultranasdaq 100 and Ultra Nasdaq 100 Profunds 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.