Pair Correlation Between Straits Tms and Hang Seng |
This module allows you to analyze existing cross correlation between Straits Tms and Hang Seng. You can compare the effects of market volatilities on Straits Tms 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 Straits Tms with a short position of Hang Seng. See also your portfolio center. Please also check ongoing floating volatility patterns of Straits Tms and Hang Seng.
| Time Horizon | 30 Days Login to change |
| Symbols | vs |
Straits Tms vs. Hang Seng
Pair Volatility
Given the investment horizon of 30 days, Straits Tms is expected to generate 0.79 times more return on investment than Hang Seng. However, Straits Tms is 1.27 times less risky than Hang Seng. It trades about 0.04 of its potential returns per unit of risk. Hang Seng is currently generating about -0.06 per unit of risk. If you would invest 351,623 in Straits Tms on March 23, 2018 and sell it today you would earn a total of 5,715 from holding Straits Tms or generate 1.63% return on investment over 30 days.
Pair Corralation between Straits Tms and Hang Seng
-0.35
| Time Period | 2 Months [change] |
| Direction | Negative |
| Strength | Insignificant |
| Accuracy | 82.69% |
| Values | Daily Returns |
Diversification
Very good diversification
Overlapping area represents the amount of risk that can be diversified away by holding Straits Tms and Hang Seng in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Hang Seng and Straits Tms 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 Straits Tms 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 Straits Tms i.e. Straits Tms and Hang Seng go up and down completely randomly.
Comparative Volatility
Straits Tms
Pair trading matchups for Straits Tms
Hang Seng
Pair trading matchups for Hang Seng
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See also your portfolio center. Please also try Price Transformation module to use price transformation models to analyze depth of different equity instruments across global markets.