Pair Correlation Between Russia TR and NQTH

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

Pair Volatility

Assuming 30 trading days horizon, Russia TR is expected to generate 12.16 times less return on investment than NQTH. In addition to that, Russia TR is 1.78 times more volatile than NQTH. It trades about 0.01 of its total potential returns per unit of risk. NQTH is currently generating about 0.17 per unit of volatility. If you would invest  113,627  in NQTH on November 13, 2017 and sell it today you would earn a total of  2,161  from holding NQTH or generate 1.9% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Russia TR and NQTH
0.04

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthInsignificant
Accuracy95.45%
ValuesDaily Returns

Diversification

Significant diversification

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

 Predicted Return Density 
      Returns