Pair Correlation Between Stockholm and Bursa Malaysia

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

Pair Volatility

Assuming 30 trading days horizon, Stockholm is expected to under-perform the Bursa Malaysia. In addition to that, Stockholm is 1.95 times more volatile than Bursa Malaysia. It trades about -0.14 of its total potential returns per unit of risk. Bursa Malaysia is currently generating about -0.16 per unit of volatility. If you would invest  173,614  in Bursa Malaysia on October 24, 2017 and sell it today you would lose (1,546)  from holding Bursa Malaysia or give up 0.89% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Stockholm and Bursa Malaysia
0.5

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthWeak
Accuracy82.61%
ValuesDaily Returns

Diversification

Very weak diversification

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

 Predicted Return Density 
      Returns