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.
|Time Horizon||30 Days Login to change|
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 1.33 times less risky than Hang Seng. The index trades about -0.1 of its potential returns per unit of risk. The Hang Seng is currently generating about 0.84 of returns per unit of risk over similar time horizon. If you would invest 2,905,041 in Hang Seng on December 18, 2017 and sell it today you would earn a total of 293,300 from holding Hang Seng or generate 10.1% return on investment over 30 days.