Pair Correlation Between IPC and OMXVGI

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

Pair Volatility

Given the investment horizon of 30 days, IPC is expected to under-perform the OMXVGI. In addition to that, IPC is 2.99 times more volatile than OMXVGI. It trades about -0.21 of its total potential returns per unit of risk. OMXVGI is currently generating about 0.11 per unit of volatility. If you would invest  65,668  in OMXVGI on October 22, 2017 and sell it today you would earn a total of  372  from holding OMXVGI or generate 0.57% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between IPC and OMXVGI
-0.64

Parameters

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

Diversification

Excellent diversification

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

 Predicted Return Density 
      Returns