Pair Correlation Between Hang Seng and Stockholm

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

Pair Volatility

Given the investment horizon of 30 days, Hang Seng is expected to generate 1.13 times less return on investment than Stockholm. In addition to that, Hang Seng is 1.52 times more volatile than Stockholm. It trades about 0.06 of its total potential returns per unit of risk. Stockholm is currently generating about 0.1 per unit of volatility. If you would invest  56,096  in Stockholm on February 15, 2018 and sell it today you would earn a total of  1,059  from holding Stockholm or generate 1.89% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Hang Seng and Stockholm


Time Period1 Month [change]
StrengthVery Weak
ValuesDaily Returns


Very good diversification

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

Comparative Volatility

 Predicted Return Density