Correlation Analysis Between BSE and NASDAQ Italy

This module allows you to analyze existing cross correlation between BSE and NASDAQ Italy. You can compare the effects of market volatilities on BSE and NASDAQ Italy 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 Italy. See also your portfolio center. Please also check ongoing floating volatility patterns of BSE and NASDAQ Italy.
Horizon     30 Days    Login   to change
Symbolsvs
Compare Efficiency

Comparative Performance

 Predicted Return Density 
      Returns 

BSE  vs.  NASDAQ Italy

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, BSE is expected to under-perform the NASDAQ Italy. But the index apears to be less risky and, when comparing its historical volatility, BSE is 1.27 times less risky than NASDAQ Italy. The index trades about -0.05 of its potential returns per unit of risk. The NASDAQ Italy is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  96,801  in NASDAQ Italy on January 20, 2019 and sell it today you would earn a total of  8,564  from holding NASDAQ Italy or generate 8.85% return on investment over 30 days.

Pair Corralation between BSE and NASDAQ Italy

0.36
Time Period2 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy78.38%
ValuesDaily Returns

Diversification Opportunities for BSE and NASDAQ Italy

BSE diversification synergy

Weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding BSE and NASDAQ Italy in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NASDAQ Italy 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 Italy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NASDAQ Italy has no effect on the direction of BSE i.e. BSE and NASDAQ Italy go up and down completely randomly.
    Optimize

Thematic Opportunities

Explore Investment Opportunities

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.
Explore Thematic Ideas
Explore Investing Ideas  
See also your portfolio center. Please also try Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.


 
Search macroaxis.com