Correlation Between The Biondo and Nasdaq-100 Profund

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Can any of the company-specific risk be diversified away by investing in both The Biondo and Nasdaq-100 Profund 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 The Biondo and Nasdaq-100 Profund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Biondo Focus and Nasdaq 100 Profund Nasdaq 100, you can compare the effects of market volatilities on The Biondo and Nasdaq-100 Profund 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 The Biondo with a short position of Nasdaq-100 Profund. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Biondo and Nasdaq-100 Profund.

Diversification Opportunities for The Biondo and Nasdaq-100 Profund

0.82
  Correlation Coefficient

Very poor diversification

The 3 months correlation between The and Nasdaq-100 is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding The Biondo Focus and Nasdaq 100 Profund Nasdaq 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq 100 Profund and The Biondo 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 The Biondo Focus are associated (or correlated) with Nasdaq-100 Profund. 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 Profund has no effect on the direction of The Biondo i.e., The Biondo and Nasdaq-100 Profund go up and down completely randomly.

Pair Corralation between The Biondo and Nasdaq-100 Profund

Assuming the 90 days horizon The Biondo Focus is expected to generate 1.01 times more return on investment than Nasdaq-100 Profund. However, The Biondo is 1.01 times more volatile than Nasdaq 100 Profund Nasdaq 100. It trades about 0.15 of its potential returns per unit of risk. Nasdaq 100 Profund Nasdaq 100 is currently generating about 0.08 per unit of risk. If you would invest  2,186  in The Biondo Focus on August 15, 2025 and sell it today you would earn a total of  205.00  from holding The Biondo Focus or generate 9.38% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy98.44%
ValuesDaily Returns

The Biondo Focus  vs.  Nasdaq 100 Profund Nasdaq 100

 Performance 
       Timeline  
Biondo Focus 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in The Biondo Focus are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, The Biondo may actually be approaching a critical reversion point that can send shares even higher in December 2025.
Nasdaq 100 Profund 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Nasdaq 100 Profund Nasdaq 100 are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Nasdaq-100 Profund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

The Biondo and Nasdaq-100 Profund Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with The Biondo and Nasdaq-100 Profund

The main advantage of trading using opposite The Biondo and Nasdaq-100 Profund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Biondo position performs unexpectedly, Nasdaq-100 Profund 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 Profund will offset losses from the drop in Nasdaq-100 Profund's long position.
The idea behind The Biondo Focus and Nasdaq 100 Profund Nasdaq 100 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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