This module allows you to analyze existing cross correlation between IPC and Straits Tms. You can compare the effects of market volatilities on IPC and Straits Tms 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 Straits Tms. See also your portfolio center. Please also check ongoing floating volatility patterns of IPC and Straits Tms.
|Horizon||30 Days Login to change|
Predicted Return Density
IPC vs. Straits Tms
Given the investment horizon of 30 days, IPC is expected to under-perform the Straits Tms. But the index apears to be less risky and, when comparing its historical volatility, IPC is 1.09 times less risky than Straits Tms. The index trades about -0.23 of its potential returns per unit of risk. The Straits Tms is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 334,864 in Straits Tms on May 17, 2019 and sell it today you would lose (12,601) from holding Straits Tms or give up 3.76% of portfolio value over 30 days.
Pair Corralation between IPC and Straits Tms
|Time Period||2 Months [change]|
Diversification Opportunities for IPC and Straits Tms
Overlapping area represents the amount of risk that can be diversified away by holding IPC and Straits Tms in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Straits Tms 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 Straits Tms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Straits Tms has no effect on the direction of IPC i.e. IPC and Straits Tms go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.