Correlation Between Ab Core and Nasdaq-100 Index
Can any of the company-specific risk be diversified away by investing in both Ab Core 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 Ab Core 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 Ab E Opportunities and Nasdaq 100 Index Fund, you can compare the effects of market volatilities on Ab Core 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 Ab Core with a short position of Nasdaq-100 Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Core and Nasdaq-100 Index.
Diversification Opportunities for Ab Core and Nasdaq-100 Index
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between ADGAX and Nasdaq-100 is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Ab E Opportunities 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 and Ab Core 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 Ab E Opportunities 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 has no effect on the direction of Ab Core i.e., Ab Core and Nasdaq-100 Index go up and down completely randomly.
Pair Corralation between Ab Core and Nasdaq-100 Index
Assuming the 90 days horizon Ab E Opportunities is expected to generate 0.75 times more return on investment than Nasdaq-100 Index. However, Ab E Opportunities is 1.33 times less risky than Nasdaq-100 Index. It trades about 0.11 of its potential returns per unit of risk. Nasdaq 100 Index Fund is currently generating about 0.02 per unit of risk. If you would invest 2,535 in Ab E Opportunities on June 4, 2025 and sell it today you would earn a total of 34.00 from holding Ab E Opportunities or generate 1.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab E Opportunities vs. Nasdaq 100 Index Fund
Performance |
| Timeline |
| Ab E Opportunities |
| Nasdaq 100 Index |
Ab Core and Nasdaq-100 Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Core and Nasdaq-100 Index
The main advantage of trading using opposite Ab Core and Nasdaq-100 Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Core 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.| Ab Core vs. Pace Municipal Fixed | Ab Core vs. Vanguard Intermediate Term Tax Exempt | Ab Core vs. Ab Bond Inflation | Ab Core vs. Barings High Yield |
| Nasdaq-100 Index vs. City National Rochdale | Nasdaq-100 Index vs. Multi Manager High Yield | Nasdaq-100 Index vs. Fidelity Capital Income | Nasdaq-100 Index vs. Pace High Yield |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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