Pair Correlation Between ATX and Madrid Gnrl

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

Pair Volatility

Given the investment horizon of 30 days, ATX is expected to under-perform the Madrid Gnrl. But the index apears to be less risky and, when comparing its historical volatility, ATX is 1.36 times less risky than Madrid Gnrl. The index trades about -0.13 of its potential returns per unit of risk. The Madrid Gnrl is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest  102,420  in Madrid Gnrl on October 23, 2017 and sell it today you would lose (1,301)  from holding Madrid Gnrl or give up 1.27% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between ATX and Madrid Gnrl


Time Period1 Month [change]
ValuesDaily Returns


Poor diversification

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

Comparative Volatility

 Predicted Return Density