Pair Correlation Between DOW and Seoul Comp

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

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to under-perform the Seoul Comp. In addition to that, DOW is 1.18 times more volatile than Seoul Comp. It trades about -0.04 of its total potential returns per unit of risk. Seoul Comp is currently generating about 0.11 per unit of volatility. If you would invest  244,282  in Seoul Comp on February 16, 2018 and sell it today you would earn a total of  5,115  from holding Seoul Comp or generate 2.09% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between DOW and Seoul Comp


Time Period1 Month [change]
ValuesDaily Returns


Significant diversification

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

Comparative Volatility

 Predicted Return Density