This module allows you to analyze existing cross correlation between Hang Seng and Bursa Malaysia. You can compare the effects of market volatilities on Hang Seng 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 Hang Seng with a short position of Bursa Malaysia. See also your portfolio center. Please also check ongoing floating volatility patterns of Hang Seng and Bursa Malaysia.
|Horizon||30 Days Login to change|
Hang Seng vs. Bursa Malaysia
Given the investment horizon of 30 days, Hang Seng is expected to under-perform the Bursa Malaysia. In addition to that, Hang Seng is 2.07 times more volatile than Bursa Malaysia. It trades about -0.28 of its total potential returns per unit of risk. Bursa Malaysia is currently generating about 0.11 per unit of volatility. If you would invest 162,206 in Bursa Malaysia on May 20, 2019 and sell it today you would earn a total of 3,070 from holding Bursa Malaysia or generate 1.89% return on investment over 30 days.
Pair Corralation between Hang Seng and Bursa Malaysia
|Time Period||2 Months [change]|
Diversification Opportunities for Hang Seng and Bursa Malaysia
Overlapping area represents the amount of risk that can be diversified away by holding Hang Seng and Bursa Malaysia in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bursa Malaysia 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 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 Hang Seng i.e. Hang Seng and Bursa Malaysia go up and down completely randomly.
See also your portfolio center. Please also try Money Managers module to screen money managers from public funds and etfs managed around the world.