Pair Correlation Between DOW and Shanghai

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

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 15.7 times less return on investment than Shanghai. In addition to that, DOW is 1.26 times more volatile than Shanghai. It trades about 0.0 of its total potential returns per unit of risk. Shanghai is currently generating about 0.02 per unit of volatility. If you would invest  326,856  in Shanghai on February 18, 2018 and sell it today you would earn a total of  1,069  from holding Shanghai or generate 0.33% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between DOW and Shanghai


Time Period1 Month [change]
ValuesDaily Returns


Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding DOW and Shanghai in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Shanghai and DOW 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 DOW 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 DOW i.e. DOW and Shanghai go up and down completely randomly.

Comparative Volatility

 Predicted Return Density