Pair Correlation Between Hang Seng and IPC

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

Pair Volatility

Given the investment horizon of 30 days, Hang Seng is expected to under-perform the IPC. In addition to that, Hang Seng is 2.07 times more volatile than IPC. It trades about -0.13 of its total potential returns per unit of risk. IPC is currently generating about -0.2 per unit of volatility. If you would invest  5,074,693  in IPC on January 24, 2018 and sell it today you would lose (177,729)  from holding IPC or give up 3.5% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Hang Seng and IPC


Time Period1 Month [change]
ValuesDaily Returns


Poor diversification

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

Comparative Volatility

 Predicted Return Density