This module allows you to analyze existing cross correlation between Swiss Mrt and ISEQ. You can compare the effects of market volatilities on Swiss Mrt and ISEQ 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 Swiss Mrt with a short position of ISEQ. See also your portfolio center. Please also check ongoing floating volatility patterns of Swiss Mrt and ISEQ.
|Horizon||30 Days Login to change|
Predicted Return Density
Swiss Mrt vs. ISEQ
Assuming 30 trading days horizon, Swiss Mrt is expected to generate 0.77 times more return on investment than ISEQ. However, Swiss Mrt is 1.3 times less risky than ISEQ. It trades about 0.1 of its potential returns per unit of risk. ISEQ is currently generating about -0.16 per unit of risk. If you would invest 959,660 in Swiss Mrt on May 17, 2019 and sell it today you would earn a total of 25,101 from holding Swiss Mrt or generate 2.62% return on investment over 30 days.
Pair Corralation between Swiss Mrt and ISEQ
|Time Period||2 Months [change]|
Diversification Opportunities for Swiss Mrt and ISEQ
Overlapping area represents the amount of risk that can be diversified away by holding Swiss Mrt and ISEQ in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on ISEQ and Swiss Mrt 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 Swiss Mrt are associated (or correlated) with ISEQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ISEQ has no effect on the direction of Swiss Mrt i.e. Swiss Mrt and ISEQ go up and down completely randomly.
See also your portfolio center. Please also try Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .