Correlation Analysis Between Swiss Mrt and IPC

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

 Predicted Return Density 

Swiss Mrt  vs.  IPC

 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, Swiss Mrt is expected to generate 1.66 times less return on investment than IPC. But when comparing it to its historical volatility, Swiss Mrt is 1.38 times less risky than IPC. It trades about 0.14 of its potential returns per unit of risk. IPC is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  3,970,005  in IPC on October 19, 2019 and sell it today you would earn a total of  369,231  from holding IPC or generate 9.3% return on investment over 30 days.

Pair Corralation between Swiss Mrt and IPC

Time Period3 Months [change]
ValuesDaily Returns

Diversification Opportunities for Swiss Mrt and IPC

Swiss Mrt diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Swiss Mrt and IPC in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on IPC 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 IPC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IPC has no effect on the direction of Swiss Mrt i.e. Swiss Mrt and IPC go up and down completely randomly.
See also your portfolio center. Please also try Fundamentals Matrix module to view fundamentals matrix and analyze how accounts are interrelated and interconnected with each other.