Pair Correlation Between Madrid Gnrl and ATX

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

Pair Volatility

Assuming 30 trading days horizon, Madrid Gnrl is expected to under-perform the ATX. But the index apears to be less risky and, when comparing its historical volatility, Madrid Gnrl is 1.02 times less risky than ATX. The index trades about -0.03 of its potential returns per unit of risk. The ATX is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  340,296  in ATX on February 18, 2018 and sell it today you would earn a total of  4,075  from holding ATX or generate 1.2% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Madrid Gnrl and ATX


Time Period1 Month [change]
ValuesDaily Returns


Significant diversification

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

Comparative Volatility

 Predicted Return Density