This module allows you to analyze existing cross correlation between NASDAQ Italy and NZSE. You can compare the effects of market volatilities on NASDAQ Italy 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 Italy with a short position of NZSE. See also your portfolio center. Please also check ongoing floating volatility patterns of NASDAQ Italy and NZSE.
|Horizon||30 Days Login to change|
Predicted Return Density
NASDAQ Italy vs. NZSE
Assuming 30 trading days horizon, NASDAQ Italy is expected to under-perform the NZSE. In addition to that, NASDAQ Italy is 1.98 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 Italy and NZSE
|Time Period||2 Months [change]|
Diversification Opportunities for NASDAQ Italy and NZSE
Overlapping area represents the amount of risk that can be diversified away by holding NASDAQ Italy and NZSE in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NZSE 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 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 Italy i.e. NASDAQ Italy and NZSE go up and down completely randomly.
See also your portfolio center. Please also try Commodity Channel Index module to use commodity channel index to analyze current equity momentum.