This module allows you to analyze existing cross correlation between Madrid Gnrl and IPC. You can compare the effects of market volatilities on Madrid Gnrl 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 Madrid Gnrl with a short position of IPC. See also your portfolio center. Please also check ongoing floating volatility patterns of Madrid Gnrl and IPC.
Assuming 30 trading days horizon, Madrid Gnrl is expected to under-perform the IPC. In addition to that, Madrid Gnrl is 1.01 times more volatile than IPC. It trades about -0.04 of its total potential returns per unit of risk. IPC is currently generating about 0.23 per unit of volatility. If you would invest 4,673,764 in IPC on June 22, 2018 and sell it today you would earn a total of 217,060 from holding IPC or generate 4.64% return on investment over 30 days.
Overlapping area represents the amount of risk that can be diversified away by holding Madrid Gnrl and IPC in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on IPC 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 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 Madrid Gnrl i.e. Madrid Gnrl and IPC go up and down completely randomly.
Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.