This module allows you to analyze existing cross correlation between NASDAQ UK and NZSE. You can compare the effects of market volatilities on NASDAQ UK and NZSE 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 NZSE. See also your portfolio center. Please also check ongoing floating volatility patterns of NASDAQ UK and NZSE.
|Horizon||30 Days Login to change|
Predicted Return Density
NASDAQ UK vs. NZSE
Assuming 30 trading days horizon, NASDAQ UK is expected to generate 2.03 times more return on investment than NZSE. However, NASDAQ UK is 2.03 times more volatile than NZSE. It trades about 0.08 of its potential returns per unit of risk. NZSE is currently generating about 0.04 per unit of risk. If you would invest 96,412 in NASDAQ UK on September 21, 2019 and sell it today you would earn a total of 4,433 from holding NASDAQ UK or generate 4.6% return on investment over 30 days.
Pair Corralation between NASDAQ UK and NZSE
|Time Period||3 Months [change]|
Diversification Opportunities for NASDAQ UK and NZSE
Very good diversification
Overlapping area represents the amount of risk that can be diversified away by holding NASDAQ UK and NZSE in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NZSE 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 NZSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NZSE has no effect on the direction of NASDAQ UK i.e. NASDAQ UK and NZSE go up and down completely randomly.
See also your portfolio center. Please also try Cryptocurrency Correlation module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins and exchanges.