Correlation Analysis Between NYSE and Nasdaq

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
Compare Efficiency

Comparative Performance

 Predicted Return Density 

NYSE  vs.  Nasdaq

 Performance (%) 

Pair Volatility

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 Period2 Months [change]
StrengthVery Strong
ValuesDaily Returns

Diversification Opportunities for NYSE and Nasdaq

NYSE diversification synergy

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.

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