This module allows you to analyze existing cross correlation between ISEQ and NZSE. You can compare the effects of market volatilities on ISEQ and NZSE 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 ISEQ with a short position of NZSE. See also your portfolio center. Please also check ongoing floating volatility patterns of ISEQ and NZSE.
|Time Horizon||30 Days Login to change|
Assuming 30 trading days horizon, ISEQ is expected to under-perform the NZSE. But the index apears to be less risky and, when comparing its historical volatility, ISEQ is 1.07 times less risky than NZSE. The index trades about -0.33 of its potential returns per unit of risk. The NZSE is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 834,750 in NZSE on January 26, 2018 and sell it today you would lose (4,578) from holding NZSE or give up 0.55% of portfolio value over 30 days.