Correlation Analysis Between NQTH and All Ords

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

Comparative Performance

 Predicted Return Density 

NQTH  vs.  All Ords

 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, NQTH is expected to generate 1.82 times less return on investment than All Ords. In addition to that, NQTH is 1.01 times more volatile than All Ords. It trades about 0.28 of its total potential returns per unit of risk. All Ords is currently generating about 0.51 per unit of volatility. If you would invest  563,270  in All Ords on January 20, 2019 and sell it today you would earn a total of  55,150  from holding All Ords or generate 9.79% return on investment over 30 days.

Pair Corralation between NQTH and All Ords

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for NQTH and All Ords

NQTH diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding NQTH and All Ords in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on All Ords and NQTH 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 NQTH are associated (or correlated) with All Ords. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of All Ords has no effect on the direction of NQTH i.e. NQTH and All Ords go up and down completely randomly.

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See also your portfolio center. Please also try Technical Analysis module to check basic technical indicators and analysis based on most latest market data.