Correlation Analysis Between NQFI and BSE

This module allows you to analyze existing cross correlation between NQFI and BSE. You can compare the effects of market volatilities on NQFI and BSE 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 NQFI with a short position of BSE. See also your portfolio center. Please also check ongoing floating volatility patterns of NQFI and BSE.
Horizon     30 Days    Login   to change
Compare Efficiency

Comparative Performance

 Predicted Return Density 

NQFI  vs.  BSE

 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, NQFI is expected to under-perform the BSE. In addition to that, NQFI is 1.29 times more volatile than BSE. It trades about -0.1 of its total potential returns per unit of risk. BSE is currently generating about 0.17 per unit of volatility. If you would invest  3,440,982  in BSE on November 18, 2018 and sell it today you would earn a total of  193,726  from holding BSE or generate 5.63% return on investment over 30 days.

Pair Corralation between NQFI and BSE

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for NQFI and BSE

NQFI diversification synergy

Excellent diversification

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

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