Pair Correlation Between Stockholm and Swiss Mrt

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

Pair Volatility

Assuming 30 trading days horizon, Stockholm is expected to under-perform the Swiss Mrt. But the index apears to be less risky and, when comparing its historical volatility, Stockholm is 1.13 times less risky than Swiss Mrt. The index trades about -0.14 of its potential returns per unit of risk. The Swiss Mrt is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  919,484  in Swiss Mrt on October 24, 2017 and sell it today you would earn a total of  9,700  from holding Swiss Mrt or generate 1.05% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Stockholm and Swiss Mrt
0.0

Parameters

Time Period1 Month [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Pay attention

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