Pair Correlation 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.
 Time Horizon     30 Days    Login   to change
 Shanghai  vs   NYSE
 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, Shanghai is expected to generate 1.51 times more return on investment than NYSE. However, Shanghai is 1.51 times more volatile than NYSE. It trades about 0.45 of its potential returns per unit of risk. NYSE is currently generating about 0.61 per unit of risk. If you would invest  326,792  in Shanghai on December 18, 2017 and sell it today you would earn a total of  16,867  from holding Shanghai or generate 5.16% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Shanghai and NYSE


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 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.

Comparative Volatility

 Predicted Return Density