This module allows you to analyze existing cross correlation between NZSE and Nasdaq. You can compare the effects of market volatilities on NZSE 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 NZSE with a short position of Nasdaq. See also your portfolio center. Please also check ongoing floating volatility patterns of NZSE and Nasdaq.
|Investment Horizon||30 Days Login to change|
Assuming 30 trading days horizon, NZSE is expected to under-perform the Nasdaq. But the index apears to be less risky and, when comparing its historical volatility, NZSE is 1.54 times less risky than Nasdaq. The index trades about -0.07 of its potential returns per unit of risk. The Nasdaq is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 658,683 in Nasdaq on October 22, 2017 and sell it today you would earn a total of 19,596 from holding Nasdaq or generate 2.98% return on investment over 30 days.