Correlation Analysis Between Stockholm and Straits Tms

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

 Predicted Return Density 

Stockholm  vs.  Straits Tms

 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, Stockholm is expected to generate 1.8 times more return on investment than Straits Tms. However, Stockholm is 1.8 times more volatile than Straits Tms. It trades about 0.04 of its potential returns per unit of risk. Straits Tms is currently generating about -0.18 per unit of risk. If you would invest  61,580  in Stockholm on September 17, 2019 and sell it today you would earn a total of  1,503  from holding Stockholm or generate 2.44% return on investment over 30 days.

Pair Corralation between Stockholm and Straits Tms

Time Period3 Months [change]
StrengthVery Weak
ValuesDaily Returns

Diversification Opportunities for Stockholm and Straits Tms

Stockholm diversification synergy

Modest diversification

Overlapping area represents the amount of risk that can be diversified away by holding Stockholm and Straits Tms in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Straits Tms 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 Straits Tms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Straits Tms has no effect on the direction of Stockholm i.e. Stockholm and Straits Tms go up and down completely randomly.
See also your portfolio center. Please also try Pattern Recognition module to use different pattern recognition models to time the market across multiple global exchanges.