Correlation Analysis Between Stockholm and NQFI

This module allows you to analyze existing cross correlation between Stockholm and NQFI. You can compare the effects of market volatilities on Stockholm and NQFI 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 Stockholm with a short position of NQFI. See also your portfolio center. Please also check ongoing floating volatility patterns of Stockholm and NQFI.
Horizon     30 Days    Login   to change
Compare Efficiency

Comparative Performance

 Predicted Return Density 

Stockholm  vs.  NQFI

 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, Stockholm is expected to generate 0.88 times more return on investment than NQFI. However, Stockholm is 1.13 times less risky than NQFI. It trades about -0.06 of its potential returns per unit of risk. NQFI is currently generating about -0.08 per unit of risk. If you would invest  56,353  in Stockholm on November 14, 2018 and sell it today you would lose (1,959)  from holding Stockholm or give up 3.48% of portfolio value over 30 days.

Pair Corralation between Stockholm and NQFI

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for Stockholm and NQFI

Stockholm diversification synergy

Very poor diversification

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

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