This module allows you to analyze existing cross correlation between NZSE and IPC. You can compare the effects of market volatilities on NZSE and IPC 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 IPC. See also your portfolio center. Please also check ongoing floating volatility patterns of NZSE and IPC.
|Time Horizon||30 Days Login to change|
NZSE vs. IPC
Assuming 30 trading days horizon, NZSE is expected to under-perform the IPC. But the index apears to be less risky and, when comparing its historical volatility, NZSE is 1.56 times less risky than IPC. The index trades about -0.02 of its potential returns per unit of risk. The IPC is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 4,846,344 in IPC on March 27, 2018 and sell it today you would lose (40,523) from holding IPC or give up 0.84% of portfolio value over 30 days.