This module allows you to analyze existing cross correlation between NASDAQ UK and NQPH. You can compare the effects of market volatilities on NASDAQ UK 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 NASDAQ UK with a short position of NQPH. See also your portfolio center. Please also check ongoing floating volatility patterns of NASDAQ UK and NQPH.
|Horizon||30 Days Login to change|
Predicted Return Density
NASDAQ UK vs. NQPH
Assuming 30 trading days horizon, NASDAQ UK is expected to under-perform the NQPH. But the index apears to be less risky and, when comparing its historical volatility, NASDAQ UK is 1.39 times less risky than NQPH. The index trades about -0.19 of its potential returns per unit of risk. The NQPH is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 109,941 in NQPH on May 17, 2019 and sell it today you would earn a total of 1,447 from holding NQPH or generate 1.32% return on investment over 30 days.
Pair Corralation between NASDAQ UK and NQPH
|Time Period||2 Months [change]|
Diversification Opportunities for NASDAQ UK and NQPH
Overlapping area represents the amount of risk that can be diversified away by holding NASDAQ UK and NQPH in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NQPH 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 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 NASDAQ UK i.e. NASDAQ UK and NQPH go up and down completely randomly.
See also your portfolio center. Please also try Theme Ratings module to determine theme ratings based on digital equity recommendations. macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.