This module allows you to analyze existing cross correlation between MerVal and NZSE. You can compare the effects of market volatilities on MerVal 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 MerVal with a short position of NZSE. See also your portfolio center. Please also check ongoing floating volatility patterns of MerVal and NZSE.
|Time Horizon||30 Days Login to change|
Assuming 30 trading days horizon, MerVal is expected to under-perform the NZSE. In addition to that, MerVal is 2.35 times more volatile than NZSE. It trades about -0.01 of its total potential returns per unit of risk. NZSE is currently generating about 0.34 per unit of volatility. If you would invest 812,531 in NZSE on February 16, 2018 and sell it today you would earn a total of 35,177 from holding NZSE or generate 4.33% return on investment over 30 days.