Correlation Analysis Between Hang Seng and ISEQ

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

Hang Seng  vs.  ISEQ

 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, Hang Seng is expected to under-perform the ISEQ. In addition to that, Hang Seng is 1.12 times more volatile than ISEQ. It trades about -0.28 of its total potential returns per unit of risk. ISEQ is currently generating about -0.19 per unit of volatility. If you would invest  654,014  in ISEQ on May 19, 2019 and sell it today you would lose (42,371)  from holding ISEQ or give up 6.48% of portfolio value over 30 days.

Pair Corralation between Hang Seng and ISEQ

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for Hang Seng and ISEQ

Hang Seng diversification synergy

Pay attention

Overlapping area represents the amount of risk that can be diversified away by holding Hang Seng and ISEQ in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on ISEQ and Hang Seng 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 Hang Seng are associated (or correlated) with ISEQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ISEQ has no effect on the direction of Hang Seng i.e. Hang Seng and ISEQ go up and down completely randomly.
See also your portfolio center. Please also try Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.