Pair Correlation Between SP 500 and Hang Seng

This module allows you to analyze existing cross correlation between S&P 500 and Hang Seng. You can compare the effects of market volatilities on SP 500 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 SP 500 with a short position of Hang Seng. See also your portfolio center. Please also check ongoing floating volatility patterns of SP 500 and Hang Seng.
 Time Horizon     30 Days    Login   to change
 S&P 500  vs   Hang Seng
 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, S&P 500 is expected to generate 0.9 times more return on investment than Hang Seng. However, S&P 500 is 1.11 times less risky than Hang Seng. It trades about -0.1 of its potential returns per unit of risk. Hang Seng is currently generating about -0.11 per unit of risk. If you would invest  283,297  in S&P 500 on January 20, 2018 and sell it today you would lose (10,075)  from holding S&P 500 or give up 3.56% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between SP 500 and Hang Seng


Time Period1 Month [change]
ValuesDaily Returns


Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding S&P 500 and Hang Seng in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Hang Seng and SP 500 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 S&P 500 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 SP 500 i.e. SP 500 and Hang Seng go up and down completely randomly.

Comparative Volatility

 Predicted Return Density