Pair Correlation Between SP 500 and Straits Tms

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

Pair Volatility

Assuming 30 trading days horizon, S&P 500 is expected to under-perform the Straits Tms. In addition to that, SP 500 is 1.79 times more volatile than Straits Tms. It trades about -0.09 of its total potential returns per unit of risk. Straits Tms is currently generating about -0.13 per unit of volatility. If you would invest  357,262  in Straits Tms on January 25, 2018 and sell it today you would lose (8,416)  from holding Straits Tms or give up 2.36% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between SP 500 and Straits Tms


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 Straits Tms in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Straits Tms 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 Straits Tms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Straits Tms has no effect on the direction of SP 500 i.e. SP 500 and Straits Tms go up and down completely randomly.

Comparative Volatility

 Predicted Return Density