This module allows you to analyze existing cross correlation between IPC and DOW. You can compare the effects of market volatilities on IPC and DOW 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 DOW. See also your portfolio center. Please also check ongoing floating volatility patterns of IPC and DOW.
Given the investment horizon of 30 days, IPC is expected to generate 0.63 times more return on investment than DOW. However, IPC is 1.58 times less risky than DOW. It trades about -0.02 of its potential returns per unit of risk. DOW is currently generating about -0.09 per unit of risk. If you would invest 4,846,344 in IPC on March 27, 2018 and sell it today you would lose (40,523) from holding IPC or give up 0.84% of portfolio value over 30 days.
Overlapping area represents the amount of risk that can be diversified away by holding IPC and DOW in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DOW 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 DOW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOW has no effect on the direction of IPC i.e. IPC and DOW 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.