Pair Correlation Between ATX and Hang Seng

This module allows you to analyze existing cross correlation between ATX and Hang Seng. You can compare the effects of market volatilities on ATX and Hang Seng 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 ATX with a short position of Hang Seng. See also your portfolio center. Please also check ongoing floating volatility patterns of ATX and Hang Seng.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 ATX  vs   Hang Seng
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, ATX is expected to under-perform the Hang Seng. In addition to that, ATX is 1.01 times more volatile than Hang Seng. It trades about -0.11 of its total potential returns per unit of risk. Hang Seng is currently generating about 0.26 per unit of volatility. If you would invest  2,815,909  in Hang Seng on October 19, 2017 and sell it today you would earn a total of  103,995  from holding Hang Seng or generate 3.69% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between ATX and Hang Seng
-0.41

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthVery Weak
Accuracy95.45%
ValuesDaily Returns

Diversification

Very good diversification

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

 Predicted Return Density 
      Returns