This module allows you to analyze existing cross correlation between Nasdaq and Swiss Mrt. You can compare the effects of market volatilities on Nasdaq and Swiss Mrt 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 Swiss Mrt. See also your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and Swiss Mrt.
Assuming 30 trading days horizon, Nasdaq is expected to generate 3.06 times less return on investment than Swiss Mrt. In addition to that, Nasdaq is 1.02 times more volatile than Swiss Mrt. It trades about 0.07 of its total potential returns per unit of risk. Swiss Mrt is currently generating about 0.23 per unit of volatility. If you would invest 846,341 in Swiss Mrt on June 19, 2018 and sell it today you would earn a total of 47,471 from holding Swiss Mrt or generate 5.61% return on investment over 30 days.
Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq and Swiss Mrt in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Swiss Mrt 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 Swiss Mrt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swiss Mrt has no effect on the direction of Nasdaq i.e. Nasdaq and Swiss Mrt go up and down completely randomly.
Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.