Pair Correlation Between NZSE and Hang Seng

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

Pair Volatility

Assuming 30 trading days horizon, NZSE is expected to under-perform the Hang Seng. But the index apears to be less risky and, when comparing its historical volatility, NZSE is 2.12 times less risky than Hang Seng. The index trades about -0.17 of its potential returns per unit of risk. The Hang Seng is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  2,871,176  in Hang Seng on October 18, 2017 and sell it today you would earn a total of  30,700  from holding Hang Seng or generate 1.07% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between NZSE and Hang Seng
0.0

Parameters

Time Period1 Month [change]
DirectionFlat 
StrengthInsignificant
Accuracy95.65%
ValuesDaily Returns

Diversification

Pay attention

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