Pair Correlation Between Russell 2000 and Stockholm

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

Pair Volatility

Given the investment horizon of 30 days, Russell 2000 is expected to generate 1.02 times more return on investment than Stockholm. However, Russell 2000 is 1.02 times more volatile than Stockholm. It trades about 0.13 of its potential returns per unit of risk. Stockholm is currently generating about 0.0 per unit of risk. If you would invest  152,999  in Russell 2000 on February 19, 2018 and sell it today you would earn a total of  4,042  from holding Russell 2000 or generate 2.64% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Russell 2000 and Stockholm


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 Stockholm in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Stockholm 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 Stockholm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stockholm has no effect on the direction of Russell 2000 i.e. Russell 2000 and Stockholm go up and down completely randomly.

Comparative Volatility

 Predicted Return Density