This module allows you to analyze existing cross correlation between NZSE and NQEGT. You can compare the effects of market volatilities on NZSE and NQEGT 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 NQEGT. See also your portfolio center
. Please also check ongoing floating volatility patterns of NZSE
NZSE vs. NQEGT
Assuming 30 trading days horizon, NZSE is expected to generate 0.67 times more return on investment than NQEGT. However, NZSE is 1.5 times less risky than NQEGT. It trades about -0.02 of its potential returns per unit of risk. NQEGT is currently generating about -0.32 per unit of risk. If you would invest 897,423 in NZSE on June 18, 2018 and sell it today you would lose (2,813) from holding NZSE or give up 0.31% of portfolio value over 30 days.
Pair Corralation between NZSE and NQEGT
|Time Period||1 Month [change]|
Overlapping area represents the amount of risk that can be diversified away by holding NZSE and NQEGT in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NQEGT and NZSE 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 NZSE are associated (or correlated) with NQEGT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NQEGT has no effect on the direction of NZSE i.e. NZSE and NQEGT go up and down completely randomly.
|IT, Search Cloud And Integrated IT Services|
|Business Address||1600 Amphitheatre Parkway|