Nasdaq-100(r) Correlations
| RYVYX Fund | USD 447.76 17.03 3.95% |
The correlation of Nasdaq-100(r) is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Nasdaq-100(r) moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Nasdaq 100 2x Strategy moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Poor diversification
The correlation between Nasdaq 100 2x Strategy and NYA is 0.67 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 2x Strategy and NYA in the same portfolio, assuming nothing else is changed.
Nasdaq-100(r) |
The ability to find closely correlated positions to Nasdaq-100(r) could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Nasdaq-100(r) when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Nasdaq-100(r) - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Nasdaq 100 2x Strategy to buy it.
Moving together with Nasdaq-100(r) Mutual Fund
| 0.66 | RYBOX | Biotechnology Fund Class | PairCorr |
| 0.85 | RYAKX | Russell 2000 15x | PairCorr |
| 0.66 | RYAHX | Mid Cap 15x | PairCorr |
| 0.99 | RYATX | Nasdaq 100 Fund | PairCorr |
Moving against Nasdaq-100(r) Mutual Fund
| 1.0 | RYACX | Inverse Nasdaq 100 | PairCorr |
| 1.0 | RYAIX | Inverse Nasdaq 100 | PairCorr |
| 1.0 | RYALX | Inverse Nasdaq 100 | PairCorr |
| 1.0 | RYAPX | Inverse Nasdaq 100 | PairCorr |
| 0.9 | RYARX | Inverse Sp 500 | PairCorr |
| 0.85 | RYAFX | Inverse Russell 2000 Potential Growth | PairCorr |
| 0.71 | RYAGX | Inverse Mid Cap | PairCorr |
| 0.49 | RYAQX | Inverse Government Long | PairCorr |
Related Correlations Analysis
| Click cells to compare fundamentals | Check Volatility | Backtest Portfolio |
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
| High negative correlations
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Risk-Adjusted Indicators
There is a big difference between Nasdaq-100(r) Mutual Fund performing well and Nasdaq-100(r) Mutual Fund doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Nasdaq-100(r)'s multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| RYBCX | 0.77 | 0.02 | 0.04 | 0.09 | 1.00 | 1.61 | 4.63 | |||
| RYBAX | 0.77 | 0.03 | 0.04 | 0.09 | 1.00 | 1.61 | 4.62 | |||
| RYBKX | 0.89 | (0.02) | 0.00 | 0.05 | 1.15 | 2.23 | 6.10 | |||
| RYBMX | 0.76 | 0.03 | 0.04 | 0.09 | 1.00 | 1.61 | 4.62 | |||
| RYBHX | 0.94 | 0.12 | 0.15 | 0.14 | 0.83 | 1.95 | 6.18 | |||
| RYBIX | 0.77 | 0.03 | 0.04 | 0.09 | 1.00 | 1.62 | 4.63 | |||
| RYBOX | 0.85 | (0.11) | 0.00 | (0.02) | 0.00 | 1.70 | 4.27 | |||
| RYABX | 0.83 | (0.18) | 0.00 | (0.19) | 0.00 | 1.33 | 4.78 | |||
| RYACX | 0.87 | 0.03 | 0.00 | 0.04 | 0.00 | 1.77 | 4.54 | |||
| RYAIX | 0.87 | 0.03 | 0.00 | 0.04 | 0.00 | 1.72 | 4.60 |
Be your own money manager
Our tools can tell you how much better you can do entering a position in Nasdaq-100(r) without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.Did you try this?
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Efficient FrontierPlot and analyze your portfolio and positions against risk-return landscape of the market. |
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Already Invested in Nasdaq 100 2x Strategy?
The danger of trading Nasdaq 100 2x Strategy is mainly related to its market volatility and Mutual Fund specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Nasdaq-100(r) is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Nasdaq-100(r). The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Nasdaq 100 2x is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Nasdaq 100 2x Strategy. Also, note that the market value of any mutual fund could be tightly coupled with the direction of predictive economic indicators such as signals in manufacturing. You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.