This module allows you to analyze existing cross correlation between NASDAQ UK and NQEGT. You can compare the effects of market volatilities on NASDAQ UK 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 NASDAQ UK with a short position of NQEGT. See also your portfolio center. Please also check ongoing floating volatility patterns of NASDAQ UK and NQEGT.
|Horizon||30 Days Login to change|
Predicted Return Density
NASDAQ UK vs. NQEGT
Assuming 30 trading days horizon, NASDAQ UK is expected to generate 0.56 times more return on investment than NQEGT. However, NASDAQ UK is 1.78 times less risky than NQEGT. It trades about 0.05 of its potential returns per unit of risk. NQEGT is currently generating about -0.02 per unit of risk. If you would invest 96,412 in NASDAQ UK on September 14, 2019 and sell it today you would earn a total of 2,243 from holding NASDAQ UK or generate 2.33% return on investment over 30 days.
Pair Corralation between NASDAQ UK and NQEGT
|Time Period||3 Months [change]|
Diversification Opportunities for NASDAQ UK and NQEGT
Overlapping area represents the amount of risk that can be diversified away by holding NASDAQ UK and NQEGT in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NQEGT and NASDAQ UK 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 NASDAQ UK 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 NASDAQ UK i.e. NASDAQ UK and NQEGT go up and down completely randomly.
See also your portfolio center. Please also try Volatility Analysis module to get historical volatility and risk analysis based on latest market data.