This module allows you to analyze existing cross correlation between Shanghai and All Ords. You can compare the effects of market volatilities on Shanghai and All Ords 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 Shanghai with a short position of All Ords. See also your portfolio center
. Please also check ongoing floating volatility patterns of Shanghai
and All Ords
Shanghai vs. All Ords
Assuming 30 trading days horizon, Shanghai is expected to under-perform the All Ords. In addition to that, Shanghai is 2.47 times more volatile than All Ords. It trades about -0.13 of its total potential returns per unit of risk. All Ords is currently generating about 0.14 per unit of volatility. If you would invest 621,280 in All Ords on June 18, 2018 and sell it today you would earn a total of 11,630 from holding All Ords or generate 1.87% return on investment over 30 days.
Pair Corralation between Shanghai and All Ords
|Time Period||1 Month [change]|
No risk reduction
Overlapping area represents the amount of risk that can be diversified away by holding Shanghai and All Ords in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on All Ords and Shanghai 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 Shanghai are associated (or correlated) with All Ords. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of All Ords has no effect on the direction of Shanghai i.e. Shanghai and All Ords go up and down completely randomly.
|IT, Search Cloud And Integrated IT Services|
|Business Address||1600 Amphitheatre Parkway|