- Companies in United States
- Peer Analysis
This module allows you to analyze existing cross correlation between S&P 500 and Shanghai. You can compare the effects of market volatilities on SP 500 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 SP 500 with a short position of Shanghai. See also your portfolio center. Please also check ongoing floating volatility patterns of SP 500 and Shanghai.
|Horizon||30 Days Login to change|
Predicted Return Density
S&P 500 vs. Shanghai
Assuming 30 trading days horizon, S&P 500 is expected to under-perform the Shanghai. But the index apears to be less risky and, when comparing its historical volatility, S&P 500 is 1.05 times less risky than Shanghai. The index trades about -0.08 of its potential returns per unit of risk. The Shanghai is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 257,008 in Shanghai on November 14, 2018 and sell it today you would earn a total of 2,366 from holding Shanghai or generate 0.92% return on investment over 30 days.
Pair Corralation between SP 500 and Shanghai
|Time Period||2 Months [change]|
Diversification Opportunities for SP 500 and Shanghai
Overlapping area represents the amount of risk that can be diversified away by holding S&P 500 and Shanghai in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Shanghai 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 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 SP 500 i.e. SP 500 and Shanghai go up and down completely randomly.