Pair Correlation Between BSE and NQTH

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

Pair Volatility

Assuming 30 trading days horizon, BSE is expected to generate 1.0 times more return on investment than NQTH. However, BSE is 1.0 times more volatile than NQTH. It trades about 0.12 of its potential returns per unit of risk. NQTH is currently generating about -0.01 per unit of risk. If you would invest  3,258,435  in BSE on October 18, 2017 and sell it today you would earn a total of  52,247  from holding BSE or generate 1.6% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between BSE and NQTH
0.36

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification

Weak diversification

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

 Predicted Return Density 
      Returns