Pair Correlation Between Nasdaq and OMXVGI

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

Pair Volatility

Assuming 30 trading days horizon, Nasdaq is expected to under-perform the OMXVGI. But the index apears to be less risky and, when comparing its historical volatility, Nasdaq is 1.45 times less risky than OMXVGI. The index trades about -0.09 of its potential returns per unit of risk. The OMXVGI is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  66,698  in OMXVGI on January 23, 2018 and sell it today you would earn a total of  184.00  from holding OMXVGI or generate 0.28% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Nasdaq and OMXVGI
0.37

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Weak
Accuracy90.48%
ValuesDaily Returns

Diversification

Weak diversification

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

 Predicted Return Density 
      Returns