This module allows you to analyze existing cross correlation between iShares North American Tech Mul and NZSE. You can compare the effects of market volatilities on iShares North and NZSE 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 iShares North with a short position of NZSE. See also your portfolio center. Please also check ongoing floating volatility patterns of iShares North and NZSE.
|Horizon||30 Days Login to change|
Predicted Return Density
iShares North American Tech Mu vs. NZSE
Considering 30-days investment horizon, iShares North American Tech Mul is expected to under-perform the NZSE. In addition to that, iShares North is 1.83 times more volatile than NZSE. It trades about -0.09 of its total potential returns per unit of risk. NZSE is currently generating about 0.08 per unit of volatility. If you would invest 1,040,805 in NZSE on July 25, 2019 and sell it today you would earn a total of 23,248 from holding NZSE or generate 2.23% return on investment over 30 days.
Pair Corralation between iShares North and NZSE
|Time Period||2 Months [change]|
Diversification Opportunities for iShares North and NZSE
Very good diversification
Overlapping area represents the amount of risk that can be diversified away by holding iShares North American Tech Mu and NZSE in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NZSE and iShares North 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 iShares North American Tech Mul are associated (or correlated) with NZSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NZSE has no effect on the direction of iShares North i.e. iShares North and NZSE go up and down completely randomly.
See also your portfolio center. Please also try Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.