Pair Correlation Between Madrid Gnrl and Nasdaq

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

Pair Volatility

Assuming 30 trading days horizon, Madrid Gnrl is expected to under-perform the Nasdaq. In addition to that, Madrid Gnrl is 1.42 times more volatile than Nasdaq. It trades about -0.06 of its total potential returns per unit of risk. Nasdaq is currently generating about 0.33 per unit of volatility. If you would invest  656,389  in Nasdaq on October 25, 2017 and sell it today you would earn a total of  30,347  from holding Nasdaq or generate 4.62% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Madrid Gnrl and Nasdaq
-0.38

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthInsignificant
Accuracy95.45%
ValuesDaily Returns

Diversification

Very good diversification

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

 Predicted Return Density 
      Returns