Correlation Analysis Between IPC and Swiss Mrt

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

 Predicted Return Density 
      Returns 

IPC  vs.  Swiss Mrt

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, IPC is expected to generate 2.69 times less return on investment than Swiss Mrt. But when comparing it to its historical volatility, IPC is 1.64 times less risky than Swiss Mrt. It trades about 0.16 of its potential returns per unit of risk. Swiss Mrt is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest  841,729  in Swiss Mrt on January 20, 2019 and sell it today you would earn a total of  83,888  from holding Swiss Mrt or generate 9.97% return on investment over 30 days.

Pair Corralation between IPC and Swiss Mrt

0.68
Time Period2 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy94.44%
ValuesDaily Returns

Diversification Opportunities for IPC and Swiss Mrt

IPC diversification synergy

Poor diversification

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