Pair Correlation Between OMXRGI and NYSE

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

Pair Volatility

Assuming 30 trading days horizon, OMXRGI is expected to generate 1.43 times more return on investment than NYSE. However, OMXRGI is 1.43 times more volatile than NYSE. It trades about 0.13 of its potential returns per unit of risk. NYSE is currently generating about -0.09 per unit of risk. If you would invest  102,419  in OMXRGI on October 19, 2017 and sell it today you would earn a total of  1,248  from holding OMXRGI or generate 1.22% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between OMXRGI and NYSE
-0.62

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification

Excellent diversification

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

 Predicted Return Density 
      Returns