- Companies in United States
- Peer Analysis
This module allows you to analyze existing cross correlation between Shanghai and DOW. You can compare the effects of market volatilities on Shanghai and DOW 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 Shanghai with a short position of DOW. See also your portfolio center. Please also check ongoing floating volatility patterns of Shanghai and DOW.
|Horizon||30 Days Login to change|
Predicted Return Density
Shanghai vs. DOW
Assuming 30 trading days horizon, Shanghai is expected to generate 1.18 times less return on investment than DOW. But when comparing it to its historical volatility, Shanghai is 1.86 times less risky than DOW. It trades about 0.34 of its potential returns per unit of risk. DOW is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2,244,537 in DOW on January 20, 2019 and sell it today you would earn a total of 342,724 from holding DOW or generate 15.27% return on investment over 30 days.
Pair Corralation between Shanghai and DOW
|Time Period||2 Months [change]|
Diversification Opportunities for Shanghai and DOW
Overlapping area represents the amount of risk that can be diversified away by holding Shanghai and DOW in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DOW and Shanghai 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 Shanghai are associated (or correlated) with DOW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOW has no effect on the direction of Shanghai i.e. Shanghai and DOW go up and down completely randomly.