This module allows you to analyze existing cross correlation between Twitter and NZSE. You can compare the effects of market volatilities on Twitter 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 Twitter with a short position of NZSE. See also your portfolio center. Please also check ongoing floating volatility patterns of Twitter and NZSE.
|Horizon||30 Days Login to change|
Predicted Return Density
Twitter Inc vs. NZSE
Given the investment horizon of 30 days, Twitter is expected to generate 2.93 times more return on investment than NZSE. However, Twitter is 2.93 times more volatile than NZSE. It trades about 0.16 of its potential returns per unit of risk. NZSE is currently generating about 0.09 per unit of risk. If you would invest 3,502 in Twitter on August 20, 2019 and sell it today you would earn a total of 822.00 from holding Twitter or generate 23.47% return on investment over 30 days.
Pair Corralation between Twitter and NZSE
|Time Period||3 Months [change]|
Diversification Opportunities for Twitter and NZSE
Very good diversification
Overlapping area represents the amount of risk that can be diversified away by holding Twitter Inc and NZSE in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NZSE and Twitter 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 Twitter 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 Twitter i.e. Twitter and NZSE go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.