This module allows you to analyze existing cross correlation between Hang Seng and NZSE. You can compare the effects of market volatilities on Hang Seng and NZSE 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 NZSE. See also your portfolio center. Please also check ongoing floating volatility patterns of Hang Seng and NZSE.
|Time Horizon||30 Days Login to change|
Given the investment horizon of 30 days, Hang Seng is expected to under-perform the NZSE. In addition to that, Hang Seng is 1.93 times more volatile than NZSE. It trades about -0.16 of its total potential returns per unit of risk. NZSE is currently generating about -0.02 per unit of volatility. If you would invest 834,750 in NZSE on January 26, 2018 and sell it today you would lose (4,578) from holding NZSE or give up 0.55% of portfolio value over 30 days.