Pair Correlation Between Bursa Malaysia and BSE

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

Pair Volatility

Assuming 30 trading days horizon, Bursa Malaysia is expected to generate 1.05 times more return on investment than BSE. However, Bursa Malaysia is 1.05 times more volatile than BSE. It trades about 0.02 of its potential returns per unit of risk. BSE is currently generating about -0.4 per unit of risk. If you would invest  183,315  in Bursa Malaysia on January 22, 2018 and sell it today you would earn a total of  513.00  from holding Bursa Malaysia or generate 0.28% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Bursa Malaysia and BSE


Time Period1 Month [change]
ValuesDaily Returns


Average diversification

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

Comparative Volatility

 Predicted Return Density