Correlation Analysis Between ETFMG Prime and BSE

This module allows you to analyze existing cross correlation between ETFMG Prime Mobile Payments ETF and BSE. You can compare the effects of market volatilities on ETFMG Prime and BSE 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 ETFMG Prime with a short position of BSE. See also your portfolio center. Please also check ongoing floating volatility patterns of ETFMG Prime and BSE.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

 Predicted Return Density 
      Returns 

ETFMG Prime Mobile Payments ET  vs.  BSE

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, ETFMG Prime Mobile Payments ETF is expected to generate 1.59 times more return on investment than BSE. However, ETFMG Prime is 1.59 times more volatile than BSE. It trades about 0.09 of its potential returns per unit of risk. BSE is currently generating about -0.15 per unit of risk. If you would invest  4,662  in ETFMG Prime Mobile Payments ETF on July 23, 2019 and sell it today you would earn a total of  224.00  from holding ETFMG Prime Mobile Payments ETF or generate 4.8% return on investment over 30 days.

Pair Corralation between ETFMG Prime and BSE

-0.32
Time Period2 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for ETFMG Prime and BSE

ETFMG Prime Mobile Payments ET diversification synergy

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding ETFMG Prime Mobile Payments ET and BSE in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on BSE and ETFMG Prime 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 ETFMG Prime Mobile Payments ETF are associated (or correlated) with BSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BSE has no effect on the direction of ETFMG Prime i.e. ETFMG Prime and BSE go up and down completely randomly.
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