Pair Correlation Between Israel Index and NQEGT

This module allows you to analyze existing cross correlation between Israel Index and NQEGT. You can compare the effects of market volatilities on Israel Index 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 Israel Index with a short position of NQEGT. See also your portfolio center. Please also check ongoing floating volatility patterns of Israel Index and NQEGT.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Israel Index  vs   NQEGT
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Israel Index is expected to under-perform the NQEGT. But the index apears to be less risky and, when comparing its historical volatility, Israel Index is 1.18 times less risky than NQEGT. The index trades about -0.26 of its potential returns per unit of risk. The NQEGT is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  103,680  in NQEGT on October 19, 2017 and sell it today you would earn a total of  1,124  from holding NQEGT or generate 1.08% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Israel Index and NQEGT
-0.46

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Israel Index and NQEGT in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NQEGT and Israel Index 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 Israel Index 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 Israel Index i.e. Israel Index and NQEGT go up and down completely randomly.
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Comparative Volatility

 Predicted Return Density 
      Returns