Correlation Analysis Between NASDAQ Italy and Bovespa

This module allows you to analyze existing cross correlation between NASDAQ Italy and Bovespa. You can compare the effects of market volatilities on NASDAQ Italy and Bovespa 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 Italy with a short position of Bovespa. See also your portfolio center. Please also check ongoing floating volatility patterns of NASDAQ Italy and Bovespa.
Horizon     30 Days    Login   to change
Check Efficiency

Comparative Performance

NASDAQ Italy  vs.  Bovespa

 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, NASDAQ Italy is expected to generate 2.92 times more return on investment than Bovespa. However, NASDAQ Italy is 2.92 times more volatile than Bovespa. It trades about 0.12 of its potential returns per unit of risk. Bovespa is currently generating about 0.05 per unit of risk. If you would invest  109,123  in NASDAQ Italy on May 25, 2019 and sell it today you would earn a total of  471.00  from holding NASDAQ Italy or generate 0.43% return on investment over 30 days.

Pair Corralation between NASDAQ Italy and Bovespa

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for NASDAQ Italy and Bovespa

NASDAQ Italy diversification synergy

Pay attention

Overlapping area represents the amount of risk that can be diversified away by holding NASDAQ Italy and Bovespa in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bovespa and NASDAQ Italy 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 Italy are associated (or correlated) with Bovespa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bovespa has no effect on the direction of NASDAQ Italy i.e. NASDAQ Italy and Bovespa go up and down completely randomly.
See also your portfolio center. Please also try Bollinger Bands module to use bollinger bands indicator to analyze target price for a given investing horizon.