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- Peer Analysis
This module allows you to analyze existing cross correlation between Russell 2000 and Shanghai. You can compare the effects of market volatilities on Russell 2000 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 Russell 2000 with a short position of Shanghai. See also your portfolio center. Please also check ongoing floating volatility patterns of Russell 2000 and Shanghai.
|Horizon||30 Days Login to change|
Predicted Return Density
Russell 2000 vs. Shanghai
Given the investment horizon of 30 days, Russell 2000 is expected to under-perform the Shanghai. In addition to that, Russell 2000 is 1.1 times more volatile than Shanghai. It trades about -0.17 of its total potential returns per unit of risk. Shanghai is currently generating about 0.03 per unit of volatility. If you would invest 255,047 in Shanghai on November 18, 2018 and sell it today you would earn a total of 2,740 from holding Shanghai or generate 1.07% return on investment over 30 days.
Pair Corralation between Russell 2000 and Shanghai
|Time Period||2 Months [change]|
Diversification Opportunities for Russell 2000 and Shanghai
Overlapping area represents the amount of risk that can be diversified away by holding Russell 2000 and Shanghai in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Shanghai 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 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 Russell 2000 i.e. Russell 2000 and Shanghai go up and down completely randomly.