Pair Correlation Between BSE and ATX

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

Pair Volatility

Assuming 30 trading days horizon, BSE is expected to generate 1.4 times less return on investment than ATX. But when comparing it to its historical volatility, BSE is 1.43 times less risky than ATX. It trades about 0.53 of its potential returns per unit of risk. ATX is currently generating about 0.52 of returns per unit of risk over similar time horizon. If you would invest  344,006  in ATX on December 22, 2017 and sell it today you would earn a total of  20,294  from holding ATX or generate 5.9% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between BSE and ATX


Time Period1 Month [change]
ValuesDaily Returns


Very poor diversification

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

Comparative Volatility

 Predicted Return Density