Pair Correlation Between Nasdaq and Russia TR

This module allows you to analyze existing cross correlation between Nasdaq and Russia TR. You can compare the effects of market volatilities on Nasdaq and Russia TR 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 Nasdaq with a short position of Russia TR. See also your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and Russia TR.
 Time Horizon     30 Days    Login   to change
Symbolsvs
 Nasdaq  vs   Russia TR
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Nasdaq is expected to generate 1.77 times less return on investment than Russia TR. But when comparing it to its historical volatility, Nasdaq is 1.51 times less risky than Russia TR. It trades about 0.62 of its potential returns per unit of risk. Russia TR is currently generating about 0.73 of returns per unit of risk over similar time horizon. If you would invest  103,238  in Russia TR on December 24, 2017 and sell it today you would earn a total of  14,825  from holding Russia TR or generate 14.36% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Nasdaq and Russia TR
0.97

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Strong
Accuracy86.36%
ValuesDaily Returns

Diversification

Almost no diversification

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

 Predicted Return Density 
      Returns