Correlation Analysis Between Madrid Gnrl and MerVal

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

Madrid Gnrl  vs.  MerVal

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Madrid Gnrl is expected to under-perform the MerVal. But the index apears to be less risky and, when comparing its historical volatility, Madrid Gnrl is 8.68 times less risky than MerVal. The index trades about -0.01 of its potential returns per unit of risk. The MerVal is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  2,693,875  in MerVal on August 20, 2018 and sell it today you would earn a total of  518,480  from holding MerVal or generate 19.25% return on investment over 30 days.

Pair Corralation between Madrid Gnrl and MerVal

-0.68
Time Period1 Month [change]
DirectionNegative 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification

Excellent diversification

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

 Predicted Return Density 
      Returns 

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See also your portfolio center. Please also try Cryptocurrency Correlation module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins and exchanges.


 
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