- Companies in United States
- Peer Analysis
This module allows you to analyze existing cross correlation between NYSE and Nasdaq. You can compare the effects of market volatilities on NYSE and Nasdaq 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 NYSE with a short position of Nasdaq. See also your portfolio center. Please also check ongoing floating volatility patterns of NYSE and Nasdaq.
|Horizon||30 Days Login to change|
Predicted Return Density
NYSE vs. Nasdaq
Given the investment horizon of 30 days, NYSE is expected to generate 1.18 times less return on investment than Nasdaq. But when comparing it to its historical volatility, NYSE is 1.3 times less risky than Nasdaq. It trades about 0.32 of its potential returns per unit of risk. Nasdaq is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 619,292 in Nasdaq on January 21, 2019 and sell it today you would earn a total of 129,615 from holding Nasdaq or generate 20.93% return on investment over 30 days.
Pair Corralation between NYSE and Nasdaq
|Time Period||2 Months [change]|
Diversification Opportunities for NYSE and Nasdaq
No risk reduction
Overlapping area represents the amount of risk that can be diversified away by holding NYSE and Nasdaq in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq and NYSE 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 NYSE are associated (or correlated) with Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq has no effect on the direction of NYSE i.e. NYSE and Nasdaq go up and down completely randomly.