Pair Correlation Between Russell 2000 and Nasdaq

This module allows you to analyze existing cross correlation between Russell 2000 and Nasdaq. You can compare the effects of market volatilities on Russell 2000 and Nasdaq 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 Russell 2000 with a short position of Nasdaq. See also your portfolio center. Please also check ongoing floating volatility patterns of Russell 2000 and Nasdaq.
Investment Horizon     30 Days    Login   to change
 Russell 2000   vs   Nasdaq
 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, Russell 2000 is expected to generate 3.52 times less return on investment than Nasdaq. In addition to that, Russell 2000 is 1.05 times more volatile than Nasdaq. It trades about 0.09 of its total potential returns per unit of risk. Nasdaq is currently generating about 0.34 per unit of volatility. If you would invest  655,677  in Nasdaq on October 26, 2017 and sell it today you would earn a total of  31,059  from holding Nasdaq or generate 4.74% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Russell 2000 and Nasdaq


Time Period1 Month [change]
ValuesDaily Returns


Average diversification

Overlapping area represents the amount of risk that can be diversified away by holding Russell 2000 and Nasdaq in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq and Russell 2000 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 Russell 2000 are associated (or correlated) with Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq has no effect on the direction of Russell 2000 i.e. Russell 2000 and Nasdaq go up and down completely randomly.

Comparative Volatility

 Predicted Return Density