Pair Correlation Between SP 500 and NQFI

This module allows you to analyze existing cross correlation between S&P 500 and NQFI. You can compare the effects of market volatilities on SP 500 and NQFI 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 NQFI. See also your portfolio center. Please also check ongoing floating volatility patterns of SP 500 and NQFI.
 Time Horizon     30 Days    Login   to change
 S&P 500  vs   NQFI
 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, S&P 500 is expected to generate 1.04 times more return on investment than NQFI. However, SP 500 is 1.04 times more volatile than NQFI. It trades about 0.02 of its potential returns per unit of risk. NQFI is currently generating about -0.22 per unit of risk. If you would invest  270,133  in S&P 500 on February 21, 2018 and sell it today you would earn a total of  1,060  from holding S&P 500 or generate 0.39% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between SP 500 and NQFI


Time Period1 Month [change]
ValuesDaily Returns


Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding S&P 500 and NQFI in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NQFI 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 NQFI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NQFI has no effect on the direction of SP 500 i.e. SP 500 and NQFI go up and down completely randomly.

Comparative Volatility

 Predicted Return Density