Correlation Between Falling Dollar and Nasdaq 100
Can any of the company-specific risk be diversified away by investing in both Falling Dollar and 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 Falling Dollar and Nasdaq 100 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Falling Dollar Profund and Nasdaq 100 Profund Nasdaq 100, you can compare the effects of market volatilities on Falling Dollar and 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 Falling Dollar with a short position of Nasdaq 100. Check out your portfolio center. Please also check ongoing floating volatility patterns of Falling Dollar and Nasdaq 100.
Diversification Opportunities for Falling Dollar and Nasdaq 100
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Falling and Nasdaq is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Falling Dollar Profund 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 Falling Dollar 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 Falling Dollar Profund are associated (or correlated) with 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 Nasdaq 100 Profund has no effect on the direction of Falling Dollar i.e., Falling Dollar and Nasdaq 100 go up and down completely randomly.
Pair Corralation between Falling Dollar and Nasdaq 100
Assuming the 90 days horizon Falling Dollar Profund is expected to under-perform the Nasdaq 100. But the mutual fund apears to be less risky and, when comparing its historical volatility, Falling Dollar Profund is 3.85 times less risky than Nasdaq 100. The mutual fund trades about -0.1 of its potential returns per unit of risk. The Nasdaq 100 Profund Nasdaq 100 is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 5,204 in Nasdaq 100 Profund Nasdaq 100 on September 22, 2025 and sell it today you would earn a total of 46.00 from holding Nasdaq 100 Profund Nasdaq 100 or generate 0.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Falling Dollar Profund vs. Nasdaq 100 Profund Nasdaq 100
Performance |
| Timeline |
| Falling Dollar Profund |
| Nasdaq 100 Profund |
Falling Dollar and Nasdaq 100 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Falling Dollar and Nasdaq 100
The main advantage of trading using opposite Falling Dollar and Nasdaq 100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Falling Dollar position performs unexpectedly, 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 Nasdaq 100 will offset losses from the drop in Nasdaq 100's long position.| Falling Dollar vs. Short Precious Metals | Falling Dollar vs. Franklin Gold Precious | Falling Dollar vs. Great West Goldman Sachs | Falling Dollar vs. Oppenheimer Gold Special |
| Nasdaq 100 vs. Guggenheim Large Cap | Nasdaq 100 vs. American Beacon Shapiro | Nasdaq 100 vs. James Small Cap | Nasdaq 100 vs. Toews Tactical Defensive |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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