Correlation Between Nasdaq 100 and Equinox Campbell
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 and Equinox Campbell 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 Nasdaq 100 and Equinox Campbell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 2x Strategy and Equinox Campbell Strategy, you can compare the effects of market volatilities on Nasdaq 100 and Equinox Campbell 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 100 with a short position of Equinox Campbell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and Equinox Campbell.
Diversification Opportunities for Nasdaq 100 and Equinox Campbell
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nasdaq and Equinox is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 2x Strategy and Equinox Campbell Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equinox Campbell Strategy and Nasdaq 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 Nasdaq 100 2x Strategy are associated (or correlated) with Equinox Campbell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equinox Campbell Strategy has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and Equinox Campbell go up and down completely randomly.
Pair Corralation between Nasdaq 100 and Equinox Campbell
If you would invest 881.00 in Equinox Campbell Strategy on January 20, 2024 and sell it today you would earn a total of 0.00 from holding Equinox Campbell Strategy or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 4.55% |
Values | Daily Returns |
Nasdaq 100 2x Strategy vs. Equinox Campbell Strategy
Performance |
Timeline |
Nasdaq 100 2x |
Equinox Campbell Strategy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nasdaq 100 and Equinox Campbell Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nasdaq 100 and Equinox Campbell
The main advantage of trading using opposite Nasdaq 100 and Equinox Campbell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 position performs unexpectedly, Equinox Campbell 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 Equinox Campbell will offset losses from the drop in Equinox Campbell's long position.Nasdaq 100 vs. Basic Materials Fund | Nasdaq 100 vs. Basic Materials Fund | Nasdaq 100 vs. Banking Fund Class | Nasdaq 100 vs. Basic Materials Fund |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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