Correlation Analysis Between BSE and Shanghai

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

Comparative Performance

 Predicted Return Density 

BSE  vs.  Shanghai

 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, BSE is expected to generate 0.69 times more return on investment than Shanghai. However, BSE is 1.44 times less risky than Shanghai. It trades about 0.16 of its potential returns per unit of risk. Shanghai is currently generating about 0.03 per unit of risk. If you would invest  3,440,982  in BSE on November 18, 2018 and sell it today you would earn a total of  180,052  from holding BSE or generate 5.23% return on investment over 30 days.

Pair Corralation between BSE and Shanghai

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for BSE and Shanghai

BSE diversification synergy

Average diversification

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

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See also your portfolio center. Please also try Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. drill down to check world indexes.