Pair Correlation Between Hang Seng and Russell 2000

This module allows you to analyze existing cross correlation between Hang Seng and Russell 2000 . You can compare the effects of market volatilities on Hang Seng and Russell 2000 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 Russell 2000. See also your portfolio center. Please also check ongoing floating volatility patterns of Hang Seng and Russell 2000.
 Time Horizon     30 Days    Login   to change
 Hang Seng  vs   Russell 2000
 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, Hang Seng is expected to generate 0.84 times more return on investment than Russell 2000. However, Hang Seng is 1.19 times less risky than Russell 2000. It trades about 0.79 of its potential returns per unit of risk. Russell 2000 is currently generating about 0.27 per unit of risk. If you would invest  2,957,801  in Hang Seng on December 22, 2017 and sell it today you would earn a total of  267,688  from holding Hang Seng or generate 9.05% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Hang Seng and Russell 2000


Time Period1 Month [change]
ValuesDaily Returns


Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Hang Seng and Russell 2000 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Russell 2000 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 Russell 2000. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Russell 2000 has no effect on the direction of Hang Seng i.e. Hang Seng and Russell 2000 go up and down completely randomly.

Comparative Volatility

 Predicted Return Density