Correlation Analysis Between Shanghai and DOW

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
Compare Efficiency

Comparative Performance

 Predicted Return Density 

Shanghai  vs.  DOW

 Performance (%) 

Pair Volatility

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 Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for Shanghai and DOW

Shanghai diversification synergy

Good diversification

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.

Thematic Opportunities

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Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.
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See also your portfolio center. Please also try Insider Screener module to find insiders across different sectors to evaluate their impact on performance.