Correlation Analysis Between NQFI and NQEGT

This module allows you to analyze existing cross correlation between NQFI and NQEGT. You can compare the effects of market volatilities on NQFI and NQEGT 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 NQEGT. See also your portfolio center. Please also check ongoing floating volatility patterns of NQFI and NQEGT.
Horizon     30 Days    Login   to change
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Comparative Performance

 Predicted Return Density 


 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, NQFI is expected to generate 0.43 times more return on investment than NQEGT. However, NQFI is 2.31 times less risky than NQEGT. It trades about 0.03 of its potential returns per unit of risk. NQEGT is currently generating about -0.02 per unit of risk. If you would invest  143,064  in NQFI on September 17, 2019 and sell it today you would earn a total of  1,400  from holding NQFI or generate 0.98% return on investment over 30 days.

Pair Corralation between NQFI and NQEGT

Time Period3 Months [change]
ValuesDaily Returns

Diversification Opportunities for NQFI and NQEGT

NQFI diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding NQFI and NQEGT in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NQEGT 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 NQEGT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NQEGT has no effect on the direction of NQFI i.e. NQFI and NQEGT go up and down completely randomly.
See also your portfolio center. Please also try Instant Ratings module to determine any equity ratings based on digital recommendations. macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.