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- Peer Analysis
This module allows you to analyze existing cross correlation between NQTH and Stockholm. You can compare the effects of market volatilities on NQTH and Stockholm 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 Stockholm. See also your portfolio center. Please also check ongoing floating volatility patterns of NQTH and Stockholm.
|Horizon||30 Days Login to change|
Predicted Return Density
NQTH vs. Stockholm
Assuming 30 trading days horizon, NQTH is expected to under-perform the Stockholm. But the index apears to be less risky and, when comparing its historical volatility, NQTH is 1.15 times less risky than Stockholm. The index trades about -0.1 of its potential returns per unit of risk. The Stockholm is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 56,353 in Stockholm on November 14, 2018 and sell it today you would lose (1,959) from holding Stockholm or give up 3.48% of portfolio value over 30 days.
Pair Corralation between NQTH and Stockholm
|Time Period||2 Months [change]|
Diversification Opportunities for NQTH and Stockholm
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding NQTH and Stockholm in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Stockholm 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 Stockholm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stockholm has no effect on the direction of NQTH i.e. NQTH and Stockholm go up and down completely randomly.