This module allows you to analyze existing cross correlation between ETFS Wheat ETC and OTP Bank Plc. You can compare the effects of market volatilities on ETFS Wheat and OTP Bank 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 ETFS Wheat with a short position of OTP Bank. See also your portfolio center. Please also check ongoing floating volatility patterns of ETFS Wheat and OTP Bank.
Assuming 30 trading days horizon, ETFS Wheat ETC is expected to generate 6.89 times more return on investment than OTP Bank. However, ETFS Wheat is 6.89 times more volatile than OTP Bank Plc. It trades about 0.15 of its potential returns per unit of risk. OTP Bank Plc is currently generating about 0.22 per unit of risk. If you would invest 66.45 in ETFS Wheat ETC on July 21, 2018 and sell it today you would earn a total of 4.35 from holding ETFS Wheat ETC or generate 6.55% return on investment over 30 days.
Overlapping area represents the amount of risk that can be diversified away by holding ETFS Commodity Securities Ltd and OTP Bank 0M69 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on OTP Bank 0M69 and ETFS Wheat 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 ETFS Wheat ETC are associated (or correlated) with OTP Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OTP Bank 0M69 has no effect on the direction of ETFS Wheat i.e. ETFS Wheat and OTP Bank go up and down completely randomly.
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