Pair Correlation Between BSE and IPC

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

Pair Volatility

Assuming 30 trading days horizon, BSE is expected to generate 0.61 times more return on investment than IPC. However, BSE is 1.64 times less risky than IPC. It trades about 0.59 of its potential returns per unit of risk. IPC is currently generating about 0.18 per unit of risk. If you would invest  3,375,628  in BSE on December 21, 2017 and sell it today you would earn a total of  175,530  from holding BSE or generate 5.2% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between BSE and IPC


Time Period1 Month [change]
ValuesDaily Returns


Very weak diversification

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

Comparative Volatility

 Predicted Return Density