This module allows you to analyze existing cross correlation between Hang Seng and Shanghai. You can compare the effects of market volatilities on Hang Seng and Shanghai 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 Shanghai. See also your portfolio center. Please also check ongoing floating volatility patterns of Hang Seng and Shanghai.
|Time Horizon||30 Days Login to change|
Given the investment horizon of 30 days, Hang Seng is expected to generate 1.14 times more return on investment than Shanghai. However, Hang Seng is 1.14 times more volatile than Shanghai. It trades about 0.83 of its potential returns per unit of risk. Shanghai is currently generating about 0.51 per unit of risk. If you would invest 2,923,409 in Hang Seng on December 20, 2017 and sell it today you would earn a total of 288,785 from holding Hang Seng or generate 9.88% return on investment over 30 days.