Pair Correlation Between IPC and OMXRGI

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

Pair Volatility

Given the investment horizon of 30 days, IPC is expected to under-perform the OMXRGI. In addition to that, IPC is 2.08 times more volatile than OMXRGI. It trades about -0.25 of its total potential returns per unit of risk. OMXRGI is currently generating about 0.18 per unit of volatility. If you would invest  102,042  in OMXRGI on October 24, 2017 and sell it today you would earn a total of  1,353  from holding OMXRGI or generate 1.33% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between IPC and OMXRGI
-0.83

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Pay attention

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

Comparative Volatility