Pair Correlation Between NYSE and Nasdaq

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

Pair Volatility

Given the investment horizon of 30 days, NYSE is expected to under-perform the Nasdaq. But the index apears to be less risky and, when comparing its historical volatility, NYSE is 1.11 times less risky than Nasdaq. The index trades about -0.04 of its potential returns per unit of risk. The Nasdaq is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  723,947  in Nasdaq on February 16, 2018 and sell it today you would earn a total of  24,252  from holding Nasdaq or generate 3.35% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between NYSE and Nasdaq


Time Period1 Month [change]
ValuesDaily Returns


Very good diversification

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

Comparative Volatility

 Predicted Return Density