Correlation Between Growth Fund and Nasdaq-100 Index
Can any of the company-specific risk be diversified away by investing in both Growth Fund 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 Growth Fund 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 Growth Fund Of and Nasdaq 100 Index Fund, you can compare the effects of market volatilities on Growth Fund 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 Growth Fund with a short position of Nasdaq-100 Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Nasdaq-100 Index.
Diversification Opportunities for Growth Fund and Nasdaq-100 Index
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Growth and NASDAQ-100 is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding GROWTH FUND OF 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 Growth Fund 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 Growth Fund Of 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 Growth Fund i.e., Growth Fund and Nasdaq-100 Index go up and down completely randomly.
Pair Corralation between Growth Fund and Nasdaq-100 Index
Assuming the 90 days horizon Growth Fund Of is expected to generate 0.84 times more return on investment than Nasdaq-100 Index. However, Growth Fund Of is 1.19 times less risky than Nasdaq-100 Index. It trades about 0.21 of its potential returns per unit of risk. Nasdaq 100 Index Fund is currently generating about 0.09 per unit of risk. If you would invest 5,981 in Growth Fund Of on December 29, 2023 and sell it today you would earn a total of 219.00 from holding Growth Fund Of or generate 3.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
GROWTH FUND OF vs. NASDAQ-100 INDEX FUND
Performance |
Timeline |
Growth Fund |
Nasdaq-100 Index Fund |
Growth Fund and Nasdaq-100 Index Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Growth Fund and Nasdaq-100 Index
The main advantage of trading using opposite Growth Fund and Nasdaq-100 Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund 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.Growth Fund vs. Income Fund Of | Growth Fund vs. American Funds 2015 | Growth Fund vs. American Mutual Fund | Growth Fund vs. American Mutual Fund |
Nasdaq-100 Index vs. American Express | Nasdaq-100 Index vs. Barloworld Ltd ADR | Nasdaq-100 Index vs. Morningstar Unconstrained Allocation | Nasdaq-100 Index vs. High Yield Municipal Fund |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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 | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |