This module allows you to analyze existing cross correlation between IPC and NZSE. You can compare the effects of market volatilities on IPC 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 IPC with a short position of NZSE. See also your portfolio center
. Please also check ongoing floating volatility patterns of IPC
IPC vs. NZSE
Given the investment horizon of 30 days, IPC is expected to generate 1.42 times more return on investment than NZSE. However, IPC is 1.42 times more volatile than NZSE. It trades about 0.18 of its potential returns per unit of risk. NZSE is currently generating about 0.01 per unit of risk. If you would invest 4,666,087 in IPC on June 17, 2018 and sell it today you would earn a total of 179,334 from holding IPC or generate 3.84% return on investment over 30 days.
Pair Corralation between IPC and NZSE
|Time Period||1 Month [change]|
Overlapping area represents the amount of risk that can be diversified away by holding IPC and NZSE in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NZSE 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 NZSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NZSE has no effect on the direction of IPC i.e. IPC and NZSE go up and down completely randomly.
|IT, Search Cloud And Integrated IT Services|
|Business Address||1600 Amphitheatre Parkway|