Correlation Analysis Between Foot Locker and NQTH

This module allows you to analyze existing cross correlation between Foot Locker and NQTH. You can compare the effects of market volatilities on Foot Locker and NQTH 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 NQTH. See also your portfolio center. Please also check ongoing floating volatility patterns of Foot Locker and NQTH.
Horizon     30 Days    Login   to change
Symbolsvs
Check Efficiency

Comparative Performance

 Predicted Return Density 
      Returns 

Foot Locker Inc  vs.  NQTH

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Foot Locker is expected to under-perform the NQTH. In addition to that, Foot Locker is 4.43 times more volatile than NQTH. It trades about -0.1 of its total potential returns per unit of risk. NQTH is currently generating about -0.18 per unit of volatility. If you would invest  122,690  in NQTH on July 27, 2019 and sell it today you would lose (7,776)  from holding NQTH or give up 6.34% of portfolio value over 30 days.

Pair Corralation between Foot Locker and NQTH

0.67
Time Period2 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Foot Locker and NQTH

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 NQTH in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NQTH 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 NQTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NQTH has no effect on the direction of Foot Locker i.e. Foot Locker and NQTH go up and down completely randomly.
    Optimize
See also your portfolio center. Please also try Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.


 
Search macroaxis.com