Correlation Between Ultranasdaq 100 and Usa Mutuals

Can any of the company-specific risk be diversified away by investing in both Ultranasdaq 100 and Usa Mutuals 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 and Usa Mutuals 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 Usa Mutuals Vice, you can compare the effects of market volatilities on Ultranasdaq 100 and Usa Mutuals 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 with a short position of Usa Mutuals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultranasdaq 100 and Usa Mutuals.

Diversification Opportunities for Ultranasdaq 100 and Usa Mutuals

-0.49

Correlation Coefficient

Ultranasdaq 100  Usa Mutuals

Very good diversification

The 3 months correlation between Ultranasdaq and Usa is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Ultranasdaq 100 Profund Ultran and Usa Mutuals Vice in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Usa Mutuals Vice and Ultranasdaq 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 Ultranasdaq 100 Profund Ultranasdaq 100 are associated (or correlated) with Usa Mutuals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Usa Mutuals Vice has no effect on the direction of Ultranasdaq 100 i.e., Ultranasdaq 100 and Usa Mutuals go up and down completely randomly.

Pair Corralation between Ultranasdaq 100 and Usa Mutuals

Assuming the 90 days horizon Ultranasdaq 100 Profund Ultranasdaq 100 is expected to generate 4.57 times more return on investment than Usa Mutuals. However, Ultranasdaq 100 is 4.57 times more volatile than Usa Mutuals Vice. It trades about -0.05 of its potential returns per unit of risk. Usa Mutuals Vice is currently generating about -0.32 per unit of risk. If you would invest  8,264  in Ultranasdaq 100 Profund Ultranasdaq 100 on October 10, 2024 and sell it today you would lose (275.00) from holding Ultranasdaq 100 Profund Ultranasdaq 100 or give up 3.33% of portfolio value over 90 days.

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

Ultranasdaq 100 Profund Ultran  vs.  Usa Mutuals Vice

Ultranasdaq 100 Profund

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ultranasdaq 100 Profund Ultranasdaq 100 are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Ultranasdaq 100 may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Usa Mutuals Vice

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Usa Mutuals Vice has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Ultranasdaq 100 and Usa Mutuals

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

The idea behind Ultranasdaq 100 Profund Ultranasdaq 100 and Usa Mutuals Vice 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.