Correlation Analysis Between SP 500 and NQEGT

This module allows you to analyze existing cross correlation between S&P 500 and NQEGT. You can compare the effects of market volatilities on SP 500 and NQEGT 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 SP 500 with a short position of NQEGT. See also your portfolio center. Please also check ongoing floating volatility patterns of SP 500 and NQEGT.
Horizon     30 Days    Login   to change
Check Efficiency

Comparative Performance

 Predicted Return Density 

S&P 500  vs.  NQEGT

 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, S&P 500 is expected to generate 0.35 times more return on investment than NQEGT. However, S&P 500 is 2.87 times less risky than NQEGT. It trades about -0.02 of its potential returns per unit of risk. NQEGT is currently generating about -0.01 per unit of risk. If you would invest  301,430  in S&P 500 on September 13, 2019 and sell it today you would lose (4,403)  from holding S&P 500 or give up 1.46% of portfolio value over 30 days.

Pair Corralation between SP 500 and NQEGT

Time Period3 Months [change]
ValuesDaily Returns

Diversification Opportunities for SP 500 and NQEGT

S&P 500 diversification synergy

Significant diversification

Overlapping area represents the amount of risk that can be diversified away by holding S&P 500 and NQEGT in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NQEGT and SP 500 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 S&P 500 are associated (or correlated) with NQEGT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NQEGT has no effect on the direction of SP 500 i.e. SP 500 and NQEGT go up and down completely randomly.
See also your portfolio center. Please also try Money Flow Index module to determine momentum by analyzing money flow index and other technical indicators.