Correlation Analysis Between Madrid Gnrl and BSE

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

 Predicted Return Density 
      Returns 

Madrid Gnrl  vs.  BSE

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Madrid Gnrl is expected to under-perform the BSE. But the index apears to be less risky and, when comparing its historical volatility, Madrid Gnrl is 1.31 times less risky than BSE. The index trades about -0.13 of its potential returns per unit of risk. The BSE is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  3,914,028  in BSE on May 18, 2019 and sell it today you would earn a total of  2,246  from holding BSE or generate 0.06% return on investment over 30 days.

Pair Corralation between Madrid Gnrl and BSE

-0.06
Time Period2 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy95.0%
ValuesDaily Returns

Diversification Opportunities for Madrid Gnrl and BSE

Madrid Gnrl diversification synergy

Good diversification

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