Correlation Analysis Between NASDAQ UK and NQTH

This module allows you to analyze existing cross correlation between NASDAQ UK and NQTH. You can compare the effects of market volatilities on NASDAQ UK and NQTH 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 NQTH. See also your portfolio center. Please also check ongoing floating volatility patterns of NASDAQ UK and NQTH.
Horizon     30 Days    Login   to change
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Comparative Performance

 Predicted Return Density 
      Returns 

NASDAQ UK  vs.  NQTH

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, NASDAQ UK is expected to generate 4.57 times less return on investment than NQTH. But when comparing it to its historical volatility, NASDAQ UK is 1.4 times less risky than NQTH. It trades about 0.09 of its potential returns per unit of risk. NQTH is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest  110,348  in NQTH on June 22, 2019 and sell it today you would earn a total of  10,863  from holding NQTH or generate 9.84% return on investment over 30 days.

Pair Corralation between NASDAQ UK and NQTH

0.76
Time Period2 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for NASDAQ UK and NQTH

NASDAQ UK diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding NASDAQ UK and NQTH in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NQTH 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 NQTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NQTH has no effect on the direction of NASDAQ UK i.e. NASDAQ UK and NQTH go up and down completely randomly.
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See also your portfolio center. Please also try Money Flow Index module to determine momentum by analyzing money flow index and other technical indicators.


 
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