Pair Correlation Between IPC and BSE

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

Pair Volatility

Given the investment horizon of 30 days, IPC is expected to under-perform the BSE. In addition to that, IPC is 1.28 times more volatile than BSE. It trades about -0.25 of its total potential returns per unit of risk. BSE is currently generating about 0.21 per unit of volatility. If you would invest  3,260,734  in BSE on October 24, 2017 and sell it today you would earn a total of  90,006  from holding BSE or generate 2.76% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between IPC and BSE
-0.09

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthInsignificant
Accuracy91.3%
ValuesDaily Returns

Diversification

Good diversification

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

 Predicted Return Density 
      Returns