This module allows you to analyze existing cross correlation between Stockholm and Shanghai. You can compare the effects of market volatilities on Stockholm and Shanghai 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 Shanghai. See also your portfolio center. Please also check ongoing floating volatility patterns of Stockholm and Shanghai.
|Investment Horizon||30 Days Login to change|
Assuming 30 trading days horizon, Stockholm is expected to under-perform the Shanghai. But the index apears to be less risky and, when comparing its historical volatility, Stockholm is 1.17 times less risky than Shanghai. The index trades about -0.2 of its potential returns per unit of risk. The Shanghai is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 340,757 in Shanghai on October 26, 2017 and sell it today you would lose (5,375) from holding Shanghai or give up 1.58% of portfolio value over 30 days.