Correlation Between Adams Resources and Nasdaq-100 Index
Can any of the company-specific risk be diversified away by investing in both Adams Resources and Nasdaq-100 Index 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 Adams Resources and Nasdaq-100 Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adams Resources Energy and Nasdaq 100 Index Fund, you can compare the effects of market volatilities on Adams Resources and Nasdaq-100 Index 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 Adams Resources with a short position of Nasdaq-100 Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adams Resources and Nasdaq-100 Index.
Diversification Opportunities for Adams Resources and Nasdaq-100 Index
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Adams and NASDAQ-100 is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Adams Resources Energy and NASDAQ-100 INDEX FUND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq-100 Index Fund and Adams Resources 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 Adams Resources Energy are associated (or correlated) with Nasdaq-100 Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq-100 Index Fund has no effect on the direction of Adams Resources i.e., Adams Resources and Nasdaq-100 Index go up and down completely randomly.
Pair Corralation between Adams Resources and Nasdaq-100 Index
Allowing for the 90-day total investment horizon Adams Resources Energy is expected to under-perform the Nasdaq-100 Index. In addition to that, Adams Resources is 2.46 times more volatile than Nasdaq 100 Index Fund. It trades about -0.09 of its total potential returns per unit of risk. Nasdaq 100 Index Fund is currently generating about 0.15 per unit of volatility. If you would invest 2,366 in Nasdaq 100 Index Fund on December 29, 2023 and sell it today you would earn a total of 1,154 from holding Nasdaq 100 Index Fund or generate 48.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 99.63% |
Values | Daily Returns |
Adams Resources Energy vs. NASDAQ-100 INDEX FUND
Performance |
Timeline |
Adams Resources Energy |
Nasdaq-100 Index Fund |
Adams Resources and Nasdaq-100 Index Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Adams Resources and Nasdaq-100 Index
The main advantage of trading using opposite Adams Resources and Nasdaq-100 Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adams Resources position performs unexpectedly, Nasdaq-100 Index 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 Nasdaq-100 Index will offset losses from the drop in Nasdaq-100 Index's long position.Adams Resources vs. Bridgford Foods | Adams Resources vs. Hf Foods Group | Adams Resources vs. Corporacion America Airports | Adams Resources vs. Kraft Heinz Co |
Nasdaq-100 Index vs. Shelton International Select | Nasdaq-100 Index vs. Shelton International Select | Nasdaq-100 Index vs. Shelton Emerging Markets | Nasdaq-100 Index vs. Shelton Emerging Markets |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Transaction History View history of all your transactions and understand their impact on performance | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |