Correlation Analysis Between BSE and Bursa Malaysia

This module allows you to analyze existing cross correlation between BSE and Bursa Malaysia. You can compare the effects of market volatilities on BSE and Bursa Malaysia 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 BSE with a short position of Bursa Malaysia. See also your portfolio center. Please also check ongoing floating volatility patterns of BSE and Bursa Malaysia.
Horizon     30 Days    Login   to change
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Comparative Performance

 Predicted Return Density 
      Returns 

BSE  vs.  Bursa Malaysia

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, BSE is expected to generate 5.39 times less return on investment than Bursa Malaysia. In addition to that, BSE is 2.03 times more volatile than Bursa Malaysia. It trades about 0.01 of its total potential returns per unit of risk. Bursa Malaysia is currently generating about 0.07 per unit of volatility. If you would invest  161,973  in Bursa Malaysia on May 18, 2019 and sell it today you would earn a total of  1,890  from holding Bursa Malaysia or generate 1.17% return on investment over 30 days.

Pair Corralation between BSE and Bursa Malaysia

0.26
Time Period2 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy94.74%
ValuesDaily Returns

Diversification Opportunities for BSE and Bursa Malaysia

BSE diversification synergy

Modest diversification

Overlapping area represents the amount of risk that can be diversified away by holding BSE and Bursa Malaysia in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bursa Malaysia and BSE 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 BSE are associated (or correlated) with Bursa Malaysia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bursa Malaysia has no effect on the direction of BSE i.e. BSE and Bursa Malaysia go up and down completely randomly.
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See also your portfolio center. Please also try Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..


 
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