Pair Correlation Between IPC and Swiss Mrt

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

Pair Volatility

Given the investment horizon of 30 days, IPC is expected to under-perform the Swiss Mrt. In addition to that, IPC is 1.34 times more volatile than Swiss Mrt. It trades about -0.27 of its total potential returns per unit of risk. Swiss Mrt is currently generating about -0.04 per unit of volatility. If you would invest  923,352  in Swiss Mrt on October 19, 2017 and sell it today you would lose (4,991)  from holding Swiss Mrt or give up 0.54% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between IPC and Swiss Mrt
0.24

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Weak
Accuracy95.45%
ValuesDaily Returns

Diversification

Modest diversification

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

 Predicted Return Density 
      Returns