Pair Correlation Between Bursa Malaysia and Stockholm

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

Pair Volatility

Assuming 30 trading days horizon, Bursa Malaysia is expected to generate 1.05 times more return on investment than Stockholm. However, Bursa Malaysia is 1.05 times more volatile than Stockholm. It trades about 0.4 of its potential returns per unit of risk. Stockholm is currently generating about 0.19 per unit of risk. If you would invest  175,164  in Bursa Malaysia on December 17, 2017 and sell it today you would earn a total of  7,103  from holding Bursa Malaysia or generate 4.06% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Bursa Malaysia and Stockholm
0.74

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Bursa Malaysia and Stockholm in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Stockholm 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 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 Bursa Malaysia i.e. Bursa Malaysia and Stockholm go up and down completely randomly.
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Comparative Volatility

 Predicted Return Density 
      Returns