Pair Correlation Between Seoul Comp and BSE

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

Pair Volatility

Assuming 30 trading days horizon, Seoul Comp is expected to generate 1.36 times more return on investment than BSE. However, Seoul Comp is 1.36 times more volatile than BSE. It trades about -0.16 of its potential returns per unit of risk. BSE is currently generating about -0.23 per unit of risk. If you would invest  251,581  in Seoul Comp on January 18, 2018 and sell it today you would lose (9,398)  from holding Seoul Comp or give up 3.74% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Seoul Comp and BSE


Time Period1 Month [change]
ValuesDaily Returns


Very poor diversification

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

Comparative Volatility

 Predicted Return Density