Correlation Analysis Between Shanghai and NYSE

This module allows you to analyze existing cross correlation between Shanghai and NYSE. You can compare the effects of market volatilities on Shanghai and NYSE 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 NYSE. See also your portfolio center. Please also check ongoing floating volatility patterns of Shanghai and NYSE.
Horizon     30 Days    Login   to change
Check Efficiency

Comparative Performance

 Predicted Return Density 

Shanghai  vs.  NYSE

 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, Shanghai is expected to generate 0.72 times more return on investment than NYSE. However, Shanghai is 1.39 times less risky than NYSE. It trades about 0.03 of its potential returns per unit of risk. NYSE is currently generating about -0.01 per unit of risk. If you would invest  288,697  in Shanghai on September 19, 2019 and sell it today you would earn a total of  5,117  from holding Shanghai or generate 1.77% return on investment over 30 days.

Pair Corralation between Shanghai and NYSE

Time Period3 Months [change]
ValuesDaily Returns

Diversification Opportunities for Shanghai and NYSE

Shanghai diversification synergy

Good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Shanghai and NYSE in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NYSE 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 NYSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE has no effect on the direction of Shanghai i.e. Shanghai and NYSE go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.