Pair Correlation Between Hang Seng and Bovespa

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

Pair Volatility

Given the investment horizon of 30 days, Hang Seng is expected to under-perform the Bovespa. In addition to that, Hang Seng is 1.03 times more volatile than Bovespa. It trades about -0.13 of its total potential returns per unit of risk. Bovespa is currently generating about 0.16 per unit of volatility. If you would invest  8,167,542  in Bovespa on January 22, 2018 and sell it today you would earn a total of  437,640  from holding Bovespa or generate 5.36% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Hang Seng and Bovespa


Time Period1 Month [change]
ValuesDaily Returns


Significant diversification

Overlapping area represents the amount of risk that can be diversified away by holding Hang Seng and Bovespa in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bovespa 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 Bovespa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bovespa has no effect on the direction of Hang Seng i.e. Hang Seng and Bovespa go up and down completely randomly.

Comparative Volatility

 Predicted Return Density