This module allows you to analyze existing cross correlation between All Ords and MerVal. You can compare the effects of market volatilities on All Ords and MerVal 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 All Ords with a short position of MerVal. See also your portfolio center. Please also check ongoing floating volatility patterns of All Ords and MerVal.
|Horizon||30 Days Login to change|
Predicted Return Density
All Ords vs. MerVal
If you would invest 2,955,677 in MerVal on May 25, 2019 and sell it today you would earn a total of 1,073,805 from holding MerVal or generate 36.33% return on investment over 30 days.
Pair Corralation between All Ords and MerVal
|Time Period||2 Months [change]|
Diversification Opportunities for All Ords and MerVal
Overlapping area represents the amount of risk that can be diversified away by holding All Ords and MerVal in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on MerVal and All Ords 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 All Ords are associated (or correlated) with MerVal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MerVal has no effect on the direction of All Ords i.e. All Ords and MerVal go up and down completely randomly.
See also your portfolio center. Please also try Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.