Correlation Between Strategic Enhanced and Inverse Nasdaq-100
Can any of the company-specific risk be diversified away by investing in both Strategic Enhanced and Inverse Nasdaq-100 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 Strategic Enhanced and Inverse Nasdaq-100 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strategic Enhanced Yield and Inverse Nasdaq 100 Strategy, you can compare the effects of market volatilities on Strategic Enhanced and Inverse Nasdaq-100 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 Strategic Enhanced with a short position of Inverse Nasdaq-100. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strategic Enhanced and Inverse Nasdaq-100.
Diversification Opportunities for Strategic Enhanced and Inverse Nasdaq-100
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Strategic and Inverse is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Strategic Enhanced Yield and Inverse Nasdaq 100 Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inverse Nasdaq 100 and Strategic Enhanced 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 Strategic Enhanced Yield are associated (or correlated) with Inverse Nasdaq-100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inverse Nasdaq 100 has no effect on the direction of Strategic Enhanced i.e., Strategic Enhanced and Inverse Nasdaq-100 go up and down completely randomly.
Pair Corralation between Strategic Enhanced and Inverse Nasdaq-100
Assuming the 90 days horizon Strategic Enhanced Yield is expected to generate 0.19 times more return on investment than Inverse Nasdaq-100. However, Strategic Enhanced Yield is 5.3 times less risky than Inverse Nasdaq-100. It trades about 0.18 of its potential returns per unit of risk. Inverse Nasdaq 100 Strategy is currently generating about -0.08 per unit of risk. If you would invest 887.00 in Strategic Enhanced Yield on August 29, 2025 and sell it today you would earn a total of 20.00 from holding Strategic Enhanced Yield or generate 2.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strategic Enhanced Yield vs. Inverse Nasdaq 100 Strategy
Performance |
| Timeline |
| Strategic Enhanced Yield |
| Inverse Nasdaq 100 |
Strategic Enhanced and Inverse Nasdaq-100 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strategic Enhanced and Inverse Nasdaq-100
The main advantage of trading using opposite Strategic Enhanced and Inverse Nasdaq-100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strategic Enhanced position performs unexpectedly, Inverse Nasdaq-100 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 Inverse Nasdaq-100 will offset losses from the drop in Inverse Nasdaq-100's long position.| Strategic Enhanced vs. Small Cap Growth Profund | Strategic Enhanced vs. Ultramid Cap Profund Ultramid Cap | Strategic Enhanced vs. Mid Cap Value Profund |
| Inverse Nasdaq-100 vs. Artisan Small Cap | Inverse Nasdaq-100 vs. William Blair Small Mid | Inverse Nasdaq-100 vs. Eagle Small Cap | Inverse Nasdaq-100 vs. Gmo Small Cap |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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