Correlation Analysis Between Bovespa and NQPH

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

Comparative Performance

 Predicted Return Density 

Bovespa  vs.  NQPH

 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, Bovespa is expected to generate 1.2 times more return on investment than NQPH. However, Bovespa is 1.2 times more volatile than NQPH. It trades about 0.28 of its potential returns per unit of risk. NQPH is currently generating about 0.16 per unit of risk. If you would invest  8,567,400  in Bovespa on January 18, 2019 and sell it today you would earn a total of  1,185,200  from holding Bovespa or generate 13.83% return on investment over 30 days.

Pair Corralation between Bovespa and NQPH

Time Period2 Months [change]
StrengthVery Strong
ValuesDaily Returns

Diversification Opportunities for Bovespa and NQPH

Bovespa diversification synergy

Almost no diversification

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

Thematic Opportunities

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See also your portfolio center. Please also try Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.