Pair Correlation Between Madrid Gnrl and Seoul Comp

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

Pair Volatility

Assuming 30 trading days horizon, Madrid Gnrl is expected to under-perform the Seoul Comp. But the index apears to be less risky and, when comparing its historical volatility, Madrid Gnrl is 1.1 times less risky than Seoul Comp. The index trades about -0.33 of its potential returns per unit of risk. The Seoul Comp is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest  250,211  in Seoul Comp on January 22, 2018 and sell it today you would lose (8,699)  from holding Seoul Comp or give up 3.48% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Madrid Gnrl and Seoul Comp


Time Period1 Month [change]
StrengthVery Strong
ValuesDaily Returns


Almost no diversification

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

Comparative Volatility

 Predicted Return Density