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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|
Predicted Return Density
BSE vs. NASDAQ Italy
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
|Time Period||2 Months [change]|
Diversification Opportunities for BSE and NASDAQ Italy
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.