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This module allows you to analyze existing cross correlation between Stockholm and BSE. You can compare the effects of market volatilities on Stockholm 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 Stockholm with a short position of BSE. See also your portfolio center. Please also check ongoing floating volatility patterns of Stockholm and BSE.
|Horizon||30 Days Login to change|
Predicted Return Density
Stockholm vs. BSE
Assuming 30 trading days horizon, Stockholm is expected to under-perform the BSE. In addition to that, Stockholm is 1.02 times more volatile than BSE. It trades about -0.1 of its total potential returns per unit of risk. BSE is currently generating about 0.04 per unit of volatility. If you would invest 3,543,794 in BSE on November 16, 2018 and sell it today you would earn a total of 52,499 from holding BSE or generate 1.48% return on investment over 30 days.
Pair Corralation between Stockholm and BSE
|Time Period||2 Months [change]|
Diversification Opportunities for Stockholm and BSE
Very good diversification
Overlapping area represents the amount of risk that can be diversified away by holding Stockholm and BSE in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on BSE and Stockholm 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 Stockholm 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 Stockholm i.e. Stockholm and BSE go up and down completely randomly.