Correlation Analysis Between Stockholm and NQTH

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

 Predicted Return Density 

Stockholm  vs.  NQTH

 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, Stockholm is expected to under-perform the NQTH. In addition to that, Stockholm is 1.53 times more volatile than NQTH. It trades about -0.06 of its total potential returns per unit of risk. NQTH is currently generating about 0.09 per unit of volatility. If you would invest  115,370  in NQTH on May 17, 2019 and sell it today you would earn a total of  2,465  from holding NQTH or generate 2.14% return on investment over 30 days.

Pair Corralation between Stockholm and NQTH

Time Period2 Months [change]
StrengthVery Weak
ValuesDaily Returns

Diversification Opportunities for Stockholm and NQTH

Stockholm diversification synergy

Modest diversification

Overlapping area represents the amount of risk that can be diversified away by holding Stockholm and NQTH in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NQTH and Stockholm 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 Stockholm are associated (or correlated) with NQTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NQTH has no effect on the direction of Stockholm i.e. Stockholm and NQTH go up and down completely randomly.
See also your portfolio center. Please also try Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.