- Companies in United States
- Peer Analysis
This module allows you to analyze existing cross correlation between Nasdaq and Russell 2000 . You can compare the effects of market volatilities on Nasdaq and Russell 2000 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 with a short position of Russell 2000. See also your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and Russell 2000.
|Horizon||30 Days Login to change|
Predicted Return Density
Nasdaq vs. Russell 2000
Assuming 30 trading days horizon, Nasdaq is expected to generate 1.14 times more return on investment than Russell 2000. However, Nasdaq is 1.14 times more volatile than Russell 2000 . It trades about -0.08 of its potential returns per unit of risk. Russell 2000 is currently generating about -0.1 per unit of risk. If you would invest 749,689 in Nasdaq on November 14, 2018 and sell it today you would lose (47,919) from holding Nasdaq or give up 6.39% of portfolio value over 30 days.
Pair Corralation between Nasdaq and Russell 2000
|Time Period||2 Months [change]|
Diversification Opportunities for Nasdaq and Russell 2000
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq and Russell 2000 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Russell 2000 and Nasdaq 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 are associated (or correlated) with Russell 2000. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Russell 2000 has no effect on the direction of Nasdaq i.e. Nasdaq and Russell 2000 go up and down completely randomly.