Pair Correlation Between NQTH and FTSE MIB

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

Pair Volatility

Assuming 30 trading days horizon, NQTH is expected to generate 1.32 times less return on investment than FTSE MIB. But when comparing it to its historical volatility, NQTH is 1.36 times less risky than FTSE MIB. It trades about 0.45 of its potential returns per unit of risk. FTSE MIB is currently generating about 0.44 of returns per unit of risk over similar time horizon. If you would invest  2,210,965  in FTSE MIB on December 20, 2017 and sell it today you would earn a total of  140,502  from holding FTSE MIB or generate 6.35% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between NQTH and FTSE MIB


Time Period1 Month [change]
ValuesDaily Returns


Poor diversification

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

Comparative Volatility

 Predicted Return Density