Pair Correlation Between Bovespa and Stockholm

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

Pair Volatility

Assuming 30 trading days horizon, Bovespa is expected to generate 2.38 times less return on investment than Stockholm. But when comparing it to its historical volatility, Bovespa is 1.08 times less risky than Stockholm. It trades about 0.05 of its potential returns per unit of risk. Stockholm is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  56,096  in Stockholm on February 15, 2018 and sell it today you would earn a total of  1,059  from holding Stockholm or generate 1.89% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Bovespa and Stockholm


Time Period1 Month [change]
ValuesDaily Returns


Significant diversification

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

Comparative Volatility

 Predicted Return Density