This module allows you to analyze existing cross correlation between FTSE MIB and Nasdaq. You can compare the effects of market volatilities on FTSE MIB and Nasdaq 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 FTSE MIB with a short position of Nasdaq. See also your portfolio center
. Please also check ongoing floating volatility patterns of FTSE MIB
FTSE MIB vs Nasdaq
If you would invest 723,947 in Nasdaq on February 16, 2018 and sell it today you would earn a total of 24,252 from holding Nasdaq or generate 3.35% return on investment over 30 days.
|Time Period||1 Month [change]|
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding FTSE MIB and Nasdaq in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq and FTSE MIB 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 FTSE MIB are associated (or correlated) with Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq has no effect on the direction of FTSE MIB i.e. FTSE MIB and Nasdaq go up and down completely randomly.