Correlation Analysis Between Russell 2000 and Seoul Comp

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

Russell 2000   vs.  Seoul Comp

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Russell 2000 is expected to generate 1.3 times more return on investment than Seoul Comp. However, Russell 2000 is 1.3 times more volatile than Seoul Comp. It trades about 0.01 of its potential returns per unit of risk. Seoul Comp is currently generating about -0.13 per unit of risk. If you would invest  168,391  in Russell 2000 on June 15, 2018 and sell it today you would earn a total of  317.00  from holding Russell 2000 or generate 0.19% return on investment over 30 days.

Pair Corralation between Russell 2000 and Seoul Comp

0.91
Time Period1 Month [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding Russell 2000 and Seoul Comp in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Seoul Comp 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 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 Russell 2000 i.e. Russell 2000 and Seoul Comp go up and down completely randomly.
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Comparative Volatility

 Predicted Return Density 
      Returns 

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