This module allows you to analyze existing cross correlation between FTSE 100 and ATX. You can compare the effects of market volatilities on FTSE 100 and ATX 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 FTSE 100 with a short position of ATX. See also your portfolio center
. Please also check ongoing floating volatility patterns of FTSE 100
FTSE 100 vs ATX
If you would invest 340,689 in ATX on December 18, 2017 and sell it today you would earn a total of 22,119 from holding ATX or generate 6.49% return on investment over 30 days.
|Time Period||1 Month [change]|
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding FTSE 100 and ATX in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on ATX and FTSE 100 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 FTSE 100 are associated (or correlated) with ATX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATX has no effect on the direction of FTSE 100 i.e. FTSE 100 and ATX go up and down completely randomly.