- Companies in United States
- Peer Analysis
This module allows you to analyze existing cross correlation between Nasdaq and Shanghai. You can compare the effects of market volatilities on Nasdaq and Shanghai 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 Nasdaq with a short position of Shanghai. See also your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and Shanghai.
|Horizon||30 Days Login to change|
Predicted Return Density
Nasdaq vs. Shanghai
Assuming 30 trading days horizon, Nasdaq is expected to under-perform the Shanghai. In addition to that, Nasdaq is 1.28 times more volatile than Shanghai. It trades about -0.12 of its total potential returns per unit of risk. Shanghai is currently generating about 0.07 per unit of volatility. If you would invest 251,190 in Shanghai on November 16, 2018 and sell it today you would earn a total of 8,184 from holding Shanghai or generate 3.26% return on investment over 30 days.
Pair Corralation between Nasdaq and Shanghai
|Time Period||2 Months [change]|
Diversification Opportunities for Nasdaq and Shanghai
Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq and Shanghai in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Shanghai and Nasdaq 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 Nasdaq are associated (or correlated) with Shanghai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai has no effect on the direction of Nasdaq i.e. Nasdaq and Shanghai go up and down completely randomly.