Correlation Analysis Between Stockholm and Shanghai

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.
Horizon     30 Days    Login   to change
Compare Efficiency

Comparative Performance

 Predicted Return Density 

Stockholm  vs.  Shanghai

 Performance (%) 

Pair Volatility

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 1.25 times less risky than Shanghai. The index trades about -0.09 of its potential returns per unit of risk. The Shanghai is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  255,047  in Shanghai on November 18, 2018 and sell it today you would earn a total of  2,618  from holding Shanghai or generate 1.03% return on investment over 30 days.

Pair Corralation between Stockholm and Shanghai

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for Stockholm and Shanghai

Stockholm diversification synergy

Significant diversification

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

Thematic Opportunities

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Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.
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See also your portfolio center. Please also try Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of macroaxis ideas.