Pair Correlation Between Shanghai and Bovespa

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

Pair Volatility

Assuming 30 trading days horizon, Shanghai is expected to generate 0.95 times more return on investment than Bovespa. However, Shanghai is 1.05 times less risky than Bovespa. It trades about 0.0 of its potential returns per unit of risk. Bovespa is currently generating about -0.06 per unit of risk. If you would invest  326,856  in Shanghai on February 21, 2018 and sell it today you would lose (507.89)  from holding Shanghai or give up 0.16% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Shanghai and Bovespa


Time Period1 Month [change]
ValuesDaily Returns


Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Shanghai and Bovespa in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bovespa 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 Bovespa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bovespa has no effect on the direction of Shanghai i.e. Shanghai and Bovespa go up and down completely randomly.

Comparative Volatility

 Predicted Return Density