Correlation Analysis Between Hang Seng and BSE

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

 Predicted Return Density 
      Returns 

Hang Seng  vs.  BSE

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Hang Seng is expected to under-perform the BSE. But the index apears to be less risky and, when comparing its historical volatility, Hang Seng is 1.14 times less risky than BSE. The index trades about -0.09 of its potential returns per unit of risk. The BSE is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  3,803,113  in BSE on September 19, 2019 and sell it today you would earn a total of  126,725  from holding BSE or generate 3.33% return on investment over 30 days.

Pair Corralation between Hang Seng and BSE

0.08
Time Period3 Months [change]
DirectionPositive 
StrengthInsignificant
Accuracy83.1%
ValuesDaily Returns

Diversification Opportunities for Hang Seng and BSE

Hang Seng diversification synergy

Significant diversification

Overlapping area represents the amount of risk that can be diversified away by holding Hang Seng and BSE in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on BSE and Hang Seng 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 Hang Seng are associated (or correlated) with BSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BSE has no effect on the direction of Hang Seng i.e. Hang Seng and BSE go up and down completely randomly.
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See also your portfolio center. Please also try Transaction History module to view history of all your transactions and understand their impact on performance.


 
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