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- Peer Analysis
This module allows you to analyze existing cross correlation between NQFI and DAX. You can compare the effects of market volatilities on NQFI and DAX 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 DAX. See also your portfolio center. Please also check ongoing floating volatility patterns of NQFI and DAX.
|Horizon||30 Days Login to change|
Predicted Return Density
NQFI vs. DAX
Assuming 30 trading days horizon, NQFI is expected to generate 1.08 times more return on investment than DAX. However, NQFI is 1.08 times more volatile than DAX. It trades about -0.13 of its potential returns per unit of risk. DAX is currently generating about -0.15 per unit of risk. If you would invest 152,920 in NQFI on November 15, 2018 and sell it today you would lose (11,254) from holding NQFI or give up 7.36% of portfolio value over 30 days.
Pair Corralation between NQFI and DAX
|Time Period||2 Months [change]|
Diversification Opportunities for NQFI and DAX
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding NQFI and DAX in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DAX 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 DAX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAX has no effect on the direction of NQFI i.e. NQFI and DAX go up and down completely randomly.