This module allows you to analyze existing cross correlation between Jakarta Comp and NASDAQ UK. You can compare the effects of market volatilities on Jakarta Comp 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 Jakarta Comp with a short position of NASDAQ UK. See also your portfolio center. Please also check ongoing floating volatility patterns of Jakarta Comp and NASDAQ UK.
|Horizon||30 Days Login to change|
Predicted Return Density
Jakarta Comp vs. NASDAQ UK
Assuming 30 trading days horizon, Jakarta Comp is expected to generate 1.33 times more return on investment than NASDAQ UK. However, Jakarta Comp is 1.33 times more volatile than NASDAQ UK. It trades about -0.08 of its potential returns per unit of risk. NASDAQ UK is currently generating about -0.18 per unit of risk. If you would invest 641,474 in Jakarta Comp on May 19, 2019 and sell it today you would lose (16,448) from holding Jakarta Comp or give up 2.56% of portfolio value over 30 days.
Pair Corralation between Jakarta Comp and NASDAQ UK
|Time Period||2 Months [change]|
Diversification Opportunities for Jakarta Comp and NASDAQ UK
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding Jakarta Comp and NASDAQ UK in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NASDAQ UK and Jakarta Comp 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 Jakarta Comp 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 Jakarta Comp i.e. Jakarta Comp and NASDAQ UK go up and down completely randomly.
See also your portfolio center. Please also try Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.