Pair Correlation Between NQPH and OMXVGI

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

Pair Volatility

Assuming 30 trading days horizon, NQPH is expected to generate 2.62 times more return on investment than OMXVGI. However, NQPH is 2.62 times more volatile than OMXVGI. It trades about 0.16 of its potential returns per unit of risk. OMXVGI is currently generating about 0.0 per unit of risk. If you would invest  115,592  in NQPH on October 26, 2017 and sell it today you would earn a total of  3,166  from holding NQPH or generate 2.74% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between NQPH and OMXVGI
0.62

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy90.91%
ValuesDaily Returns

Diversification

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding NQPH and OMXVGI in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on OMXVGI 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 OMXVGI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OMXVGI has no effect on the direction of NQPH i.e. NQPH and OMXVGI go up and down completely randomly.
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Comparative Volatility

 Predicted Return Density 
      Returns