Correlation Between Brompton Split and BetaPro NASDAQ

Can any of the company-specific risk be diversified away by investing in both Brompton Split and BetaPro NASDAQ 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 Brompton Split and BetaPro NASDAQ into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Brompton Split Corp and BetaPro NASDAQ 100 2x, you can compare the effects of market volatilities on Brompton Split and BetaPro NASDAQ 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 Brompton Split with a short position of BetaPro NASDAQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brompton Split and BetaPro NASDAQ.

Diversification Opportunities for Brompton Split and BetaPro NASDAQ

0.93

Correlation Coefficient

Brompton Split  BetaPro NASDAQ

Almost no diversification

The 3 months correlation between Brompton and BetaPro is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Brompton Split Corp and BetaPro NASDAQ 100 2x in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BetaPro NASDAQ 100 and Brompton Split 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 Brompton Split Corp are associated (or correlated) with BetaPro NASDAQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BetaPro NASDAQ 100 has no effect on the direction of Brompton Split i.e., Brompton Split and BetaPro NASDAQ go up and down completely randomly.

Pair Corralation between Brompton Split and BetaPro NASDAQ

Assuming the 90 days trading horizon Brompton Split Corp is expected to generate 0.51 times more return on investment than BetaPro NASDAQ. However, Brompton Split Corp is 1.97 times less risky than BetaPro NASDAQ. It trades about 0.13 of its potential returns per unit of risk. BetaPro NASDAQ 100 2x is currently generating about 0.05 per unit of risk. If you would invest  971.00  in Brompton Split Corp on March 26, 2025 and sell it today you would earn a total of  114.00  from holding Brompton Split Corp or generate 11.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	13.33%
Values	Daily Returns

Brompton Split Corp  vs.  BetaPro NASDAQ 100 2x

Brompton Split Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Brompton Split Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Brompton Split may actually be approaching a critical reversion point that can send shares even higher in July 2025.

BetaPro NASDAQ 100

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in BetaPro NASDAQ 100 2x are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, BetaPro NASDAQ displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Brompton Split and BetaPro NASDAQ

The main advantage of trading using opposite Brompton Split and BetaPro NASDAQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brompton Split position performs unexpectedly, BetaPro NASDAQ 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 BetaPro NASDAQ will offset losses from the drop in BetaPro NASDAQ's long position.

The idea behind Brompton Split Corp and BetaPro NASDAQ 100 2x 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.