Correlation Between Midas Fund and Nasdaq-100 Fund

Can any of the company-specific risk be diversified away by investing in both Midas Fund and Nasdaq-100 Fund 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 Midas Fund and Nasdaq-100 Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Midas Fund Midas and Nasdaq 100 Fund Class, you can compare the effects of market volatilities on Midas Fund and Nasdaq-100 Fund 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 Midas Fund with a short position of Nasdaq-100 Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Midas Fund and Nasdaq-100 Fund.

Diversification Opportunities for Midas Fund and Nasdaq-100 Fund

0.38

Correlation Coefficient

Midas Fund  Nasdaq-100 Fund

Weak diversification

The 3 months correlation between Midas and Nasdaq-100 is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Midas Fund Midas and Nasdaq 100 Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq 100 Fund and Midas Fund 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 Midas Fund Midas are associated (or correlated) with Nasdaq-100 Fund. 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 Fund has no effect on the direction of Midas Fund i.e., Midas Fund and Nasdaq-100 Fund go up and down completely randomly.

Pair Corralation between Midas Fund and Nasdaq-100 Fund

Assuming the 90 days horizon Midas Fund is expected to generate 1.09 times less return on investment than Nasdaq-100 Fund. In addition to that, Midas Fund is 2.36 times more volatile than Nasdaq 100 Fund Class. It trades about 0.1 of its total potential returns per unit of risk. Nasdaq 100 Fund Class is currently generating about 0.25 per unit of volatility. If you would invest  7,251  in Nasdaq 100 Fund Class on May 22, 2025 and sell it today you would earn a total of  877.00  from holding Nasdaq 100 Fund Class or generate 12.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Midas Fund Midas  vs.  Nasdaq 100 Fund Class

Midas Fund Midas

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Midas Fund Midas are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Midas Fund may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Nasdaq 100 Fund

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Nasdaq 100 Fund Class are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Nasdaq-100 Fund may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Midas Fund and Nasdaq-100 Fund

The main advantage of trading using opposite Midas Fund and Nasdaq-100 Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Midas Fund position performs unexpectedly, Nasdaq-100 Fund 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 Fund will offset losses from the drop in Nasdaq-100 Fund's long position.

The idea behind Midas Fund Midas and Nasdaq 100 Fund Class 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.