Pair Correlation Between ATX and OSE All

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

Pair Volatility

Given the investment horizon of 30 days, ATX is expected to under-perform the OSE All. But the index apears to be less risky and, when comparing its historical volatility, ATX is 1.1 times less risky than OSE All. The index trades about -0.14 of its potential returns per unit of risk. The OSE All is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  87,155  in OSE All on October 24, 2017 and sell it today you would earn a total of  2,284  from holding OSE All or generate 2.62% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between ATX and OSE All
0.35

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Weak
Accuracy95.65%
ValuesDaily Returns

Diversification

Weak diversification

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

 Predicted Return Density 
      Returns