This module allows you to analyze existing cross correlation between Swiss Mrt and Israel Index. You can compare the effects of market volatilities on Swiss Mrt and Israel Index 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 Israel Index. See also your portfolio center. Please also check ongoing floating volatility patterns of Swiss Mrt and Israel Index.
|Horizon||30 Days Login to change|
Predicted Return Density
Swiss Mrt vs. Israel Index
Assuming 30 trading days horizon, Swiss Mrt is expected to generate 0.65 times more return on investment than Israel Index. However, Swiss Mrt is 1.53 times less risky than Israel Index. It trades about 0.09 of its potential returns per unit of risk. Israel Index is currently generating about -0.16 per unit of risk. If you would invest 963,507 in Swiss Mrt on May 19, 2019 and sell it today you would earn a total of 21,650 from holding Swiss Mrt or generate 2.25% return on investment over 30 days.
Pair Corralation between Swiss Mrt and Israel Index
|Time Period||2 Months [change]|
Diversification Opportunities for Swiss Mrt and Israel Index
Very good diversification
Overlapping area represents the amount of risk that can be diversified away by holding Swiss Mrt and Israel Index in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Israel Index 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 Israel Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Israel Index has no effect on the direction of Swiss Mrt i.e. Swiss Mrt and Israel Index go up and down completely randomly.
See also your portfolio center. Please also try Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.