Pair Correlation Between NQTH and BSE

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

Pair Volatility

Assuming 30 trading days horizon, NQTH is expected to generate 1.47 times more return on investment than BSE. However, NQTH is 1.47 times more volatile than BSE. It trades about 0.53 of its potential returns per unit of risk. BSE is currently generating about 0.41 per unit of risk. If you would invest  116,888  in NQTH on December 18, 2017 and sell it today you would earn a total of  8,130  from holding NQTH or generate 6.96% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between NQTH and BSE
0.9

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Strong
Accuracy95.65%
ValuesDaily Returns

Diversification

Almost no diversification

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

 Predicted Return Density 
      Returns