Correlation Analysis Between Russell 2000 and IPC

This module allows you to analyze existing cross correlation between Russell 2000 and IPC. You can compare the effects of market volatilities on Russell 2000 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 Russell 2000 with a short position of IPC. See also your portfolio center. Please also check ongoing floating volatility patterns of Russell 2000 and IPC.
Horizon     30 Days    Login   to change
Compare Efficiency

Comparative Performance

 Predicted Return Density 

Russell 2000   vs.  IPC

 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, Russell 2000 is expected to generate 0.81 times more return on investment than IPC. However, Russell 2000 is 1.24 times less risky than IPC. It trades about -0.18 of its potential returns per unit of risk. IPC is currently generating about -0.18 per unit of risk. If you would invest  158,966  in Russell 2000 on November 15, 2018 and sell it today you would lose (17,885)  from holding Russell 2000 or give up 11.25% of portfolio value over 30 days.

Pair Corralation between Russell 2000 and IPC

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for Russell 2000 and IPC

Russell 2000  diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Russell 2000 and IPC in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on IPC and Russell 2000 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 Russell 2000 are associated (or correlated) with IPC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IPC has no effect on the direction of Russell 2000 i.e. Russell 2000 and IPC go up and down completely randomly.

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See also your portfolio center. Please also try Coins and Tokens Correlation module to utilize digital token correlation table to build portfolio of cryptocurrencies across multiple exchanges.