Pair Correlation Between MerVal and Madrid Gnrl

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

Pair Volatility

Assuming 30 trading days horizon, MerVal is expected to generate 2.19 times more return on investment than Madrid Gnrl. However, MerVal is 2.19 times more volatile than Madrid Gnrl. It trades about 0.54 of its potential returns per unit of risk. Madrid Gnrl is currently generating about 0.3 per unit of risk. If you would invest  2,918,562  in MerVal on December 23, 2017 and sell it today you would earn a total of  440,608  from holding MerVal or generate 15.1% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between MerVal and Madrid Gnrl


Time Period1 Month [change]
ValuesDaily Returns


Poor diversification

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

Comparative Volatility

 Predicted Return Density