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This module allows you to analyze existing cross correlation between Hang Seng and Israel Index. You can compare the effects of market volatilities on Hang Seng and Israel Index 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 Israel Index. See also your portfolio center. Please also check ongoing floating volatility patterns of Hang Seng and Israel Index.
|Horizon||30 Days Login to change|
Predicted Return Density
Hang Seng vs. Israel Index
Given the investment horizon of 30 days, Hang Seng is expected to generate 1.13 times more return on investment than Israel Index. However, Hang Seng is 1.13 times more volatile than Israel Index. It trades about 0.44 of its potential returns per unit of risk. Israel Index is currently generating about 0.43 per unit of risk. If you would invest 2,547,888 in Hang Seng on January 21, 2019 and sell it today you would earn a total of 303,517 from holding Hang Seng or generate 11.91% return on investment over 30 days.
Pair Corralation between Hang Seng and Israel Index
|Time Period||2 Months [change]|
Diversification Opportunities for Hang Seng and Israel Index
Overlapping area represents the amount of risk that can be diversified away by holding Hang Seng and Israel Index in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Israel Index 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 Israel Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Israel Index has no effect on the direction of Hang Seng i.e. Hang Seng and Israel Index go up and down completely randomly.