Pair Correlation Between Swiss Mrt and NQTH

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

Pair Volatility

Assuming 30 trading days horizon, Swiss Mrt is expected to generate 12.1 times less return on investment than NQTH. In addition to that, Swiss Mrt is 1.06 times more volatile than NQTH. It trades about 0.04 of its total potential returns per unit of risk. NQTH is currently generating about 0.53 per unit of volatility. If you would invest  117,183  in NQTH on December 19, 2017 and sell it today you would earn a total of  8,215  from holding NQTH or generate 7.01% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Swiss Mrt and NQTH
0.71

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy82.61%
ValuesDaily Returns

Diversification

Poor diversification

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

 Predicted Return Density 
      Returns