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- Peer Analysis
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|
Predicted Return Density
Madrid Gnrl vs. MerVal
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 2.15 times less risky than MerVal. The index trades about -0.03 of its potential returns per unit of risk. The MerVal is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,869,061 in MerVal on November 18, 2018 and sell it today you would earn a total of 119,741 from holding MerVal or generate 4.17% return on investment over 30 days.
Pair Corralation between Madrid Gnrl and MerVal
|Time Period||2 Months [change]|
Diversification Opportunities for Madrid Gnrl and MerVal
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.