Pair Correlation Between NZSE and Bursa Malaysia

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

Pair Volatility

Assuming 30 trading days horizon, NZSE is expected to generate 1.16 times more return on investment than Bursa Malaysia. However, NZSE is 1.16 times more volatile than Bursa Malaysia. It trades about 0.36 of its potential returns per unit of risk. Bursa Malaysia is currently generating about -0.05 per unit of risk. If you would invest  811,520  in NZSE on February 19, 2018 and sell it today you would earn a total of  37,692  from holding NZSE or generate 4.64% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between NZSE and Bursa Malaysia


Time Period1 Month [change]
ValuesDaily Returns


Average diversification

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

Comparative Volatility

 Predicted Return Density