Pair Correlation Between Russell 2000 and Hang Seng

This module allows you to analyze existing cross correlation between Russell 2000 and Hang Seng. You can compare the effects of market volatilities on Russell 2000 and Hang Seng 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 Russell 2000 with a short position of Hang Seng. See also your portfolio center. Please also check ongoing floating volatility patterns of Russell 2000 and Hang Seng.
 Time Horizon     30 Days    Login   to change
 Russell 2000   vs   Hang Seng
 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, Russell 2000 is expected to generate 0.71 times more return on investment than Hang Seng. However, Russell 2000 is 1.4 times less risky than Hang Seng. It trades about 0.17 of its potential returns per unit of risk. Hang Seng is currently generating about 0.06 per unit of risk. If you would invest  153,720  in Russell 2000 on February 15, 2018 and sell it today you would earn a total of  4,885  from holding Russell 2000 or generate 3.18% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Russell 2000 and Hang Seng


Time Period1 Month [change]
ValuesDaily Returns


Good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Russell 2000 and Hang Seng in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Hang Seng and Russell 2000 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 Russell 2000 are associated (or correlated) with Hang Seng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hang Seng has no effect on the direction of Russell 2000 i.e. Russell 2000 and Hang Seng go up and down completely randomly.

Comparative Volatility

 Predicted Return Density