Correlation Analysis Between IBEX 35 and DOW

This module allows you to analyze existing cross correlation between IBEX 35 and DOW. You can compare the effects of market volatilities on IBEX 35 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 IBEX 35 with a short position of DOW. See also your portfolio center. Please also check ongoing floating volatility patterns of IBEX 35 and DOW.
Horizon     30 Days    Login   to change
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Comparative Performance

 Predicted Return Density 
      Returns 

IBEX 35  vs.  DOW

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, IBEX 35 is expected to generate 2.12 times more return on investment than DOW. However, IBEX 35 is 2.12 times more volatile than DOW. It trades about 0.08 of its potential returns per unit of risk. DOW is currently generating about 0.1 per unit of risk. If you would invest  896,610  in IBEX 35 on November 13, 2019 and sell it today you would earn a total of  59,760  from holding IBEX 35 or generate 6.67% return on investment over 30 days.

Pair Corralation between IBEX 35 and DOW

0.47
Time Period3 Months [change]
DirectionPositive 
StrengthWeak
Accuracy98.46%
ValuesDaily Returns

Diversification Opportunities for IBEX 35 and DOW

IBEX 35 diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding IBEX 35 and DOW in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DOW and IBEX 35 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 IBEX 35 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 IBEX 35 i.e. IBEX 35 and DOW go up and down completely randomly.
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See also your portfolio center. Please also try Instant Ratings module to determine any equity ratings based on digital recommendations. macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.


 
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