Pair Correlation Between Hang Seng and NQEGT

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

Pair Volatility

Given the investment horizon of 30 days, Hang Seng is expected to under-perform the NQEGT. In addition to that, Hang Seng is 1.6 times more volatile than NQEGT. It trades about -0.08 of its total potential returns per unit of risk. NQEGT is currently generating about -0.08 per unit of volatility. If you would invest  116,700  in NQEGT on January 18, 2018 and sell it today you would lose (2,106)  from holding NQEGT or give up 1.8% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Hang Seng and NQEGT


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

Comparative Volatility

 Predicted Return Density