Correlation Between Nasdaq-100 Profund and Huber Capital
Can any of the company-specific risk be diversified away by investing in both Nasdaq-100 Profund and Huber Capital 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 Profund and Huber Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 Profund Nasdaq 100 and Huber Capital Small, you can compare the effects of market volatilities on Nasdaq-100 Profund and Huber Capital 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 Profund with a short position of Huber Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq-100 Profund and Huber Capital.
Diversification Opportunities for Nasdaq-100 Profund and Huber Capital
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nasdaq-100 and Huber is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 Profund Nasdaq 100 and Huber Capital Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huber Capital Small and Nasdaq-100 Profund 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 Profund Nasdaq 100 are associated (or correlated) with Huber Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huber Capital Small has no effect on the direction of Nasdaq-100 Profund i.e., Nasdaq-100 Profund and Huber Capital go up and down completely randomly.
Pair Corralation between Nasdaq-100 Profund and Huber Capital
Assuming the 90 days horizon Nasdaq-100 Profund is expected to generate 1.11 times less return on investment than Huber Capital. But when comparing it to its historical volatility, Nasdaq 100 Profund Nasdaq 100 is 1.35 times less risky than Huber Capital. It trades about 0.28 of its potential returns per unit of risk. Huber Capital Small is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 2,609 in Huber Capital Small on April 3, 2025 and sell it today you would earn a total of 129.00 from holding Huber Capital Small or generate 4.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq 100 Profund Nasdaq 100 vs. Huber Capital Small
Performance |
| Timeline |
| Nasdaq 100 Profund |
| Huber Capital Small |
Nasdaq-100 Profund and Huber Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq-100 Profund and Huber Capital
The main advantage of trading using opposite Nasdaq-100 Profund and Huber Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq-100 Profund position performs unexpectedly, Huber Capital 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 Huber Capital will offset losses from the drop in Huber Capital's long position.| Nasdaq-100 Profund vs. Alpine Ultra Short | Nasdaq-100 Profund vs. Inverse Government Long | Nasdaq-100 Profund vs. California Municipal Portfolio | Nasdaq-100 Profund vs. Dws Government Money |
| Huber Capital vs. United Kingdom Small | Huber Capital vs. Nt International Small Mid | Huber Capital vs. Edgewood Growth Fund | Huber Capital vs. Mid Cap Growth |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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