Correlation Analysis Between Nasdaq and Shanghai

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
Compare Efficiency

Comparative Performance

 Predicted Return Density 

Nasdaq  vs.  Shanghai

 Performance (%) 

Pair Volatility

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 Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for Nasdaq and Shanghai

Nasdaq diversification synergy

Average diversification

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.

Thematic Opportunities

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See also your portfolio center. Please also try Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.