Correlation Analysis Between BSE and NASDAQ UK

This module allows you to analyze existing cross correlation between BSE and NASDAQ UK. You can compare the effects of market volatilities on BSE and NASDAQ UK 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 BSE with a short position of NASDAQ UK. See also your portfolio center. Please also check ongoing floating volatility patterns of BSE and NASDAQ UK.
Horizon     30 Days    Login   to change
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Comparative Performance

 Predicted Return Density 
      Returns 

BSE  vs.  NASDAQ UK

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, BSE is expected to generate 1.42 times more return on investment than NASDAQ UK. However, BSE is 1.42 times more volatile than NASDAQ UK. It trades about 0.01 of its potential returns per unit of risk. NASDAQ UK is currently generating about -0.18 per unit of risk. If you would invest  3,914,028  in BSE on May 18, 2019 and sell it today you would earn a total of  2,246  from holding BSE or generate 0.06% return on investment over 30 days.

Pair Corralation between BSE and NASDAQ UK

-0.28
Time Period2 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy95.0%
ValuesDaily Returns

Diversification Opportunities for BSE and NASDAQ UK

BSE diversification synergy

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding BSE and NASDAQ UK in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NASDAQ UK and BSE 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 BSE are associated (or correlated) with NASDAQ UK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NASDAQ UK has no effect on the direction of BSE i.e. BSE and NASDAQ UK go up and down completely randomly.
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See also your portfolio center. Please also try Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.


 
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