Pair Correlation Between ATX and IPC

This module allows you to analyze existing cross correlation between ATX and IPC. You can compare the effects of market volatilities on ATX 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 ATX with a short position of IPC. See also your portfolio center. Please also check ongoing floating volatility patterns of ATX and IPC.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 ATX  vs   IPC
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, ATX is expected to generate 0.84 times more return on investment than IPC. However, ATX is 1.19 times less risky than IPC. It trades about -0.14 of its potential returns per unit of risk. IPC is currently generating about -0.27 per unit of risk. If you would invest  340,313  in ATX on October 18, 2017 and sell it today you would lose (7,114)  from holding ATX or give up 2.09% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between ATX and IPC
0.34

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Weak
Accuracy95.45%
ValuesDaily Returns

Diversification

Weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding ATX and IPC in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on IPC 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 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 ATX i.e. ATX and IPC go up and down completely randomly.
    Optimize

Comparative Volatility

 Predicted Return Density 
      Returns