Correlation Analysis Between Foot Locker and NASDAQ UK

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

 Predicted Return Density 
      Returns 

Foot Locker Inc  vs.  NASDAQ UK

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Foot Locker is expected to under-perform the NASDAQ UK. In addition to that, Foot Locker is 4.82 times more volatile than NASDAQ UK. It trades about -0.12 of its total potential returns per unit of risk. NASDAQ UK is currently generating about -0.24 per unit of volatility. If you would invest  102,143  in NASDAQ UK on July 24, 2019 and sell it today you would lose (7,849)  from holding NASDAQ UK or give up 7.68% of portfolio value over 30 days.

Pair Corralation between Foot Locker and NASDAQ UK

0.72
Time Period2 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Foot Locker and NASDAQ UK

Foot Locker Inc diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Foot Locker Inc and NASDAQ UK in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NASDAQ UK and Foot Locker 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 Foot Locker are associated (or correlated) with NASDAQ UK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NASDAQ UK has no effect on the direction of Foot Locker i.e. Foot Locker and NASDAQ UK go up and down completely randomly.
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See also your portfolio center. Please also try Commodity Channel Index module to use commodity channel index to analyze current equity momentum.


 
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