This module allows you to analyze existing cross correlation between All Ords and Shanghai. You can compare the effects of market volatilities on All Ords and Shanghai 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 All Ords with a short position of Shanghai. See also your portfolio center. Please also check ongoing floating volatility patterns of All Ords and Shanghai.
|Time Horizon||30 Days Login to change|
Assuming 30 trading days horizon, All Ords is expected to under-perform the Shanghai. But the index apears to be less risky and, when comparing its historical volatility, All Ords is 1.43 times less risky than Shanghai. The index trades about -0.16 of its potential returns per unit of risk. The Shanghai is currently generating about 0.66 of returns per unit of risk over similar time horizon. If you would invest 328,046 in Shanghai on December 24, 2017 and sell it today you would earn a total of 22,090 from holding Shanghai or generate 6.73% return on investment over 30 days.