Correlation Between IBEX 35 and Bucharest BET-NG
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By analyzing existing cross correlation between IBEX 35 Index and Bucharest BET-NG, you can compare the effects of market volatilities on IBEX 35 and Bucharest BET-NG 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 Bucharest BET-NG. Check out your portfolio center. Please also check ongoing floating volatility patterns of IBEX 35 and Bucharest BET-NG.
Diversification Opportunities for IBEX 35 and Bucharest BET-NG
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IBEX and Bucharest is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding IBEX 35 Index and Bucharest BET-NG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bucharest BET-NG 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 Index are associated (or correlated) with Bucharest BET-NG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bucharest BET-NG has no effect on the direction of IBEX 35 i.e., IBEX 35 and Bucharest BET-NG go up and down completely randomly.
Pair Corralation between IBEX 35 and Bucharest BET-NG
Assuming the 90 days trading horizon IBEX 35 Index is expected to generate 2.58 times more return on investment than Bucharest BET-NG. However, IBEX 35 is 2.58 times more volatile than Bucharest BET-NG. It trades about 0.09 of its potential returns per unit of risk. Bucharest BET-NG is currently generating about -0.14 per unit of risk. If you would invest 1,097,560 in IBEX 35 Index on January 30, 2024 and sell it today you would earn a total of 17,900 from holding IBEX 35 Index or generate 1.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 95.24% |
Values | Daily Returns |
IBEX 35 Index vs. Bucharest BET-NG
Performance |
Timeline |
IBEX 35 and Bucharest BET-NG Volatility Contrast
Predicted Return Density |
Returns |
IBEX 35 Index
Pair trading matchups for IBEX 35
Bucharest BET-NG
Pair trading matchups for Bucharest BET-NG
Pair Trading with IBEX 35 and Bucharest BET-NG
The main advantage of trading using opposite IBEX 35 and Bucharest BET-NG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IBEX 35 position performs unexpectedly, Bucharest BET-NG can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bucharest BET-NG will offset losses from the drop in Bucharest BET-NG's long position.IBEX 35 vs. Cellnex Telecom SA | IBEX 35 vs. Biotechnology Assets SA | IBEX 35 vs. Media Investment Optimization | IBEX 35 vs. Elaia Investment Spain |
Bucharest BET-NG vs. AROBS TRANSILVANIA SOFTWARE | Bucharest BET-NG vs. TRANSILVANIA LEASING SI | Bucharest BET-NG vs. IM Vinaria Purcari | Bucharest BET-NG vs. TRANSILVANIA INVESTMENTS ALLIANCE |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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