Correlation Analysis Between Stockholm and Seoul Comp

This module allows you to analyze existing cross correlation between Stockholm and Seoul Comp. You can compare the effects of market volatilities on Stockholm and Seoul Comp 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 Seoul Comp. See also your portfolio center. Please also check ongoing floating volatility patterns of Stockholm and Seoul Comp.
Horizon     30 Days    Login   to change
Compare Efficiency

Comparative Performance

 Predicted Return Density 

Stockholm  vs.  Seoul Comp

 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, Stockholm is expected to generate 0.96 times more return on investment than Seoul Comp. However, Stockholm is 1.04 times less risky than Seoul Comp. It trades about -0.09 of its potential returns per unit of risk. Seoul Comp is currently generating about -0.11 per unit of risk. If you would invest  56,162  in Stockholm on November 18, 2018 and sell it today you would lose (2,534)  from holding Stockholm or give up 4.51% of portfolio value over 30 days.

Pair Corralation between Stockholm and Seoul Comp

Time Period2 Months [change]
StrengthVery Weak
ValuesDaily Returns

Diversification Opportunities for Stockholm and Seoul Comp

Stockholm diversification synergy

Modest diversification

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

Thematic Opportunities

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