Pair Correlation Between FTSE 100 and Shanghai

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

Pair Volatility

If you would invest  338,825  in Shanghai on October 24, 2017 and sell it today you would earn a total of  4,045  from holding Shanghai or generate 1.19% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between FTSE 100 and Shanghai
0.48

Parameters

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

Diversification

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding FTSE 100 and Shanghai in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Shanghai 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 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 FTSE 100 i.e. FTSE 100 and Shanghai go up and down completely randomly.
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Comparative Volatility

 Predicted Return Density 
      Returns