This module allows you to analyze existing cross correlation between Apple and CA. You can compare the effects of market volatilities on Apple and CA 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 Apple with a short position of CA. See also your portfolio center. Please also check ongoing floating volatility patterns of Apple and CA.
Given the investment horizon of 30 days, Apple is expected to under-perform the CA. In addition to that, Apple is 1.08 times more volatile than CA. It trades about -0.14 of its total potential returns per unit of risk. CA is currently generating about -0.04 per unit of volatility. If you would invest 3,536 in CA on March 26, 2018 and sell it today you would lose (95.00) from holding CA or give up 2.69% of portfolio value over 30 days.
Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and CA INC in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on CA and Apple 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 Apple are associated (or correlated) with CA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CA has no effect on the direction of Apple i.e. Apple and CA 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.