This module allows you to analyze existing cross correlation between NASDAQ Italy and Nasdaq. You can compare the effects of market volatilities on NASDAQ Italy and Nasdaq 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 Italy with a short position of Nasdaq. See also your portfolio center. Please also check ongoing floating volatility patterns of NASDAQ Italy and Nasdaq.
|Horizon||30 Days Login to change|
Predicted Return Density
NASDAQ Italy vs. Nasdaq
Assuming 30 trading days horizon, NASDAQ Italy is expected to generate 1.36 times more return on investment than Nasdaq. However, NASDAQ Italy is 1.36 times more volatile than Nasdaq. It trades about 0.04 of its potential returns per unit of risk. Nasdaq is currently generating about 0.0 per unit of risk. If you would invest 109,487 in NASDAQ Italy on September 16, 2019 and sell it today you would earn a total of 1,976 from holding NASDAQ Italy or generate 1.8% return on investment over 30 days.
Pair Corralation between NASDAQ Italy and Nasdaq
|Time Period||3 Months [change]|
Diversification Opportunities for NASDAQ Italy and Nasdaq
Overlapping area represents the amount of risk that can be diversified away by holding NASDAQ Italy and Nasdaq in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq and NASDAQ Italy 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 Italy are associated (or correlated) with Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq has no effect on the direction of NASDAQ Italy i.e. NASDAQ Italy and Nasdaq go up and down completely randomly.
See also your portfolio center. Please also try Balance Of Power module to check stock momentum by analyzing balance of power indicator and other technical ratios.