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- Peer Analysis
This module allows you to analyze existing cross correlation between NASDAQ UK and NASDAQ Italy. You can compare the effects of market volatilities on NASDAQ UK 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 NASDAQ UK with a short position of NASDAQ Italy. See also your portfolio center. Please also check ongoing floating volatility patterns of NASDAQ UK and NASDAQ Italy.
|Horizon||30 Days Login to change|
Predicted Return Density
NASDAQ UK vs. NASDAQ Italy
Assuming 30 trading days horizon, NASDAQ UK is expected to generate 0.75 times more return on investment than NASDAQ Italy. However, NASDAQ UK is 1.34 times less risky than NASDAQ Italy. It trades about 0.27 of its potential returns per unit of risk. NASDAQ Italy is currently generating about 0.18 per unit of risk. If you would invest 92,213 in NASDAQ UK on January 20, 2019 and sell it today you would earn a total of 9,127 from holding NASDAQ UK or generate 9.9% return on investment over 30 days.
Pair Corralation between NASDAQ UK and NASDAQ Italy
|Time Period||2 Months [change]|
Diversification Opportunities for NASDAQ UK and NASDAQ Italy
Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding NASDAQ UK and NASDAQ Italy in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NASDAQ Italy and NASDAQ UK 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 NASDAQ UK 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 NASDAQ UK i.e. NASDAQ UK and NASDAQ Italy go up and down completely randomly.