This module allows you to analyze existing cross correlation between Straits Tms and NYSE. You can compare the effects of market volatilities on Straits Tms and NYSE 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 Straits Tms with a short position of NYSE. See also your portfolio center. Please also check ongoing floating volatility patterns of Straits Tms and NYSE.
Given the investment horizon of 30 days, Straits Tms is expected to under-perform the NYSE. In addition to that, Straits Tms is 1.4 times more volatile than NYSE. It trades about -0.11 of its total potential returns per unit of risk. NYSE is currently generating about 0.12 per unit of volatility. If you would invest 1,263,898 in NYSE on June 19, 2018 and sell it today you would earn a total of 18,425 from holding NYSE or generate 1.46% return on investment over 30 days.
Overlapping area represents the amount of risk that can be diversified away by holding Straits Tms and NYSE in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NYSE and Straits Tms 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 Straits Tms are associated (or correlated) with NYSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE has no effect on the direction of Straits Tms i.e. Straits Tms and NYSE go up and down completely randomly.
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