Correlation Analysis Between NASDAQ UK and NZSE

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

 Predicted Return Density 
      Returns 

NASDAQ UK  vs.  NZSE

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, NASDAQ UK is expected to under-perform the NZSE. In addition to that, NASDAQ UK is 1.46 times more volatile than NZSE. It trades about -0.18 of its total potential returns per unit of risk. NZSE is currently generating about 0.13 per unit of volatility. If you would invest  1,000,484  in NZSE on May 18, 2019 and sell it today you would earn a total of  21,273  from holding NZSE or generate 2.13% return on investment over 30 days.

Pair Corralation between NASDAQ UK and NZSE

-0.76
Time Period2 Months [change]
DirectionNegative 
StrengthWeak
Accuracy87.5%
ValuesDaily Returns

Diversification Opportunities for NASDAQ UK and NZSE

NASDAQ UK diversification synergy

Pay attention

Overlapping area represents the amount of risk that can be diversified away by holding NASDAQ UK and NZSE in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NZSE 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 NZSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NZSE has no effect on the direction of NASDAQ UK i.e. NASDAQ UK and NZSE go up and down completely randomly.
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See also your portfolio center. Please also try Volatility Analysis module to get historical volatility and risk analysis based on latest market data.


 
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