Pair Correlation Between ATX and NQEGT

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

Pair Volatility

Given the investment horizon of 30 days, ATX is expected to under-perform the NQEGT. In addition to that, ATX is 1.23 times more volatile than NQEGT. It trades about -0.26 of its total potential returns per unit of risk. NQEGT is currently generating about 0.06 per unit of volatility. If you would invest  115,281  in NQEGT on January 26, 2018 and sell it today you would earn a total of  1,342  from holding NQEGT or generate 1.16% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between ATX and NQEGT
0.28

Parameters

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

Diversification

Modest diversification

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

 Predicted Return Density 
      Returns