Correlation Analysis Between All Ords and IPC

This module allows you to analyze existing cross correlation between All Ords and IPC. You can compare the effects of market volatilities on All Ords and IPC 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 All Ords with a short position of IPC. See also your portfolio center. Please also check ongoing floating volatility patterns of All Ords and IPC.
Horizon     30 Days    Login   to change
Compare Efficiency

Comparative Performance

 Predicted Return Density 

All Ords  vs.  IPC

 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, All Ords is expected to generate 0.53 times more return on investment than IPC. However, All Ords is 1.89 times less risky than IPC. It trades about -0.14 of its potential returns per unit of risk. IPC is currently generating about -0.21 per unit of risk. If you would invest  594,490  in All Ords on November 18, 2018 and sell it today you would lose (28,310)  from holding All Ords or give up 4.76% of portfolio value over 30 days.

Pair Corralation between All Ords and IPC

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for All Ords and IPC

All Ords diversification synergy

Poor diversification

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

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See also your portfolio center. Please also try Theme Ratings module to determine theme ratings based on digital equity recommendations. macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.