Pair Correlation Between FTSE 100 and Hang Seng

This module allows you to analyze existing cross correlation between FTSE 100 and Hang Seng. You can compare the effects of market volatilities on FTSE 100 and Hang Seng 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 FTSE 100 with a short position of Hang Seng. See also your portfolio center. Please also check ongoing floating volatility patterns of FTSE 100 and Hang Seng.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 FTSE 100  vs   Hang Seng
 Performance (%) 
      Timeline 

Pair Volatility

If you would invest  2,830,588  in Hang Seng on October 23, 2017 and sell it today you would earn a total of  151,219  from holding Hang Seng or generate 5.34% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between FTSE 100 and Hang Seng
0.63

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy4.35%
ValuesDaily Returns

Diversification

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding FTSE 100 and Hang Seng in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Hang Seng and FTSE 100 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 FTSE 100 are associated (or correlated) with Hang Seng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hang Seng has no effect on the direction of FTSE 100 i.e. FTSE 100 and Hang Seng go up and down completely randomly.
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Comparative Volatility

 Predicted Return Density 
      Returns