Correlation Analysis Between NQPH and Israel Index

This module allows you to analyze existing cross correlation between NQPH and Israel Index. You can compare the effects of market volatilities on NQPH and Israel Index 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 NQPH with a short position of Israel Index. See also your portfolio center. Please also check ongoing floating volatility patterns of NQPH and Israel Index.
Horizon     30 Days    Login   to change
Check Efficiency

Comparative Performance

 Predicted Return Density 

NQPH  vs.  Israel Index

 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, NQPH is expected to generate 3.2 times less return on investment than Israel Index. In addition to that, NQPH is 1.09 times more volatile than Israel Index. It trades about 0.02 of its total potential returns per unit of risk. Israel Index is currently generating about 0.08 per unit of volatility. If you would invest  99,371  in Israel Index on September 21, 2019 and sell it today you would earn a total of  3,275  from holding Israel Index or generate 3.3% return on investment over 30 days.

Pair Corralation between NQPH and Israel Index

Time Period3 Months [change]
ValuesDaily Returns

Diversification Opportunities for NQPH and Israel Index

NQPH diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding NQPH and Israel Index in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Israel Index and NQPH 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 NQPH are associated (or correlated) with Israel Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Israel Index has no effect on the direction of NQPH i.e. NQPH and Israel Index go up and down completely randomly.
See also your portfolio center. Please also try Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.