Correlation Analysis Between DOW and NASDAQ Italy

This module allows you to analyze existing cross correlation between DOW and NASDAQ Italy. You can compare the effects of market volatilities on DOW and NASDAQ Italy 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 DOW with a short position of NASDAQ Italy. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and NASDAQ Italy.
Horizon     30 Days    Login   to change
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Comparative Performance

 Predicted Return Density 
      Returns 

DOW  vs.  NASDAQ Italy

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to under-perform the NASDAQ Italy. But the index apears to be less risky and, when comparing its historical volatility, DOW is 1.68 times less risky than NASDAQ Italy. The index trades about -0.03 of its potential returns per unit of risk. The NASDAQ Italy is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  109,487  in NASDAQ Italy on September 14, 2019 and sell it today you would earn a total of  872.00  from holding NASDAQ Italy or generate 0.8% return on investment over 30 days.

Pair Corralation between DOW and NASDAQ Italy

0.07
Time Period3 Months [change]
DirectionPositive 
StrengthInsignificant
Accuracy53.13%
ValuesDaily Returns

Diversification Opportunities for DOW and NASDAQ Italy

DOW diversification synergy

Significant diversification

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