This module allows you to analyze existing cross correlation between ATX and FTSE 100. You can compare the effects of market volatilities on ATX and FTSE 100 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 ATX with a short position of FTSE 100. See also your portfolio center
. Please also check ongoing floating volatility patterns of ATX
and FTSE 100
ATX vs FTSE 100
If you would invest 342,063 in ATX on December 19, 2017 and sell it today you would earn a total of 20,745 from holding ATX or generate 6.06% return on investment over 30 days.
|Time Period||1 Month [change]|
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding ATX and FTSE 100 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on FTSE 100 and ATX 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 ATX are associated (or correlated) with FTSE 100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTSE 100 has no effect on the direction of ATX i.e. ATX and FTSE 100 go up and down completely randomly.