Correlation Between Nasdaq 100 and Blackrock Global
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 and Blackrock Global 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 Blackrock Global 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 Blackrock Global Lng, you can compare the effects of market volatilities on Nasdaq 100 and Blackrock Global 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 Blackrock Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and Blackrock Global.
Diversification Opportunities for Nasdaq 100 and Blackrock Global
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nasdaq and Blackrock is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 2x Strategy and Blackrock Global Lng in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Global Lng 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 Blackrock Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Global Lng has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and Blackrock Global go up and down completely randomly.
Pair Corralation between Nasdaq 100 and Blackrock Global
Assuming the 90 days horizon Nasdaq 100 2x Strategy is expected to generate 2.1 times more return on investment than Blackrock Global. However, Nasdaq 100 is 2.1 times more volatile than Blackrock Global Lng. It trades about 0.15 of its potential returns per unit of risk. Blackrock Global Lng is currently generating about 0.01 per unit of risk. If you would invest 36,655 in Nasdaq 100 2x Strategy on September 12, 2024 and sell it today you would earn a total of 6,762 from holding Nasdaq 100 2x Strategy or generate 18.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.44% |
Values | Daily Returns |
Nasdaq 100 2x Strategy vs. Blackrock Global Lng
Performance |
Timeline |
Nasdaq 100 2x |
Blackrock Global Lng |
Nasdaq 100 and Blackrock Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nasdaq 100 and Blackrock Global
The main advantage of trading using opposite Nasdaq 100 and Blackrock Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 position performs unexpectedly, Blackrock Global 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 Blackrock Global will offset losses from the drop in Blackrock Global's long position.Nasdaq 100 vs. Ambrus Core Bond | Nasdaq 100 vs. Pace High Yield | Nasdaq 100 vs. Franklin High Yield | Nasdaq 100 vs. The National Tax Free |
Blackrock Global vs. Dws Emerging Markets | Blackrock Global vs. Ep Emerging Markets | Blackrock Global vs. Investec Emerging Markets | Blackrock Global vs. Nasdaq 100 2x Strategy |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |