Pair Correlation Between ATX and Bovespa

This module allows you to analyze existing cross correlation between ATX and Bovespa. You can compare the effects of market volatilities on ATX and Bovespa 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 ATX with a short position of Bovespa. See also your portfolio center. Please also check ongoing floating volatility patterns of ATX and Bovespa.
 Time Horizon     30 Days    Login   to change
 ATX  vs   Bovespa
 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, ATX is expected to under-perform the Bovespa. But the index apears to be less risky and, when comparing its historical volatility, ATX is 1.07 times less risky than Bovespa. The index trades about -0.26 of its potential returns per unit of risk. The Bovespa is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  8,553,084  in Bovespa on January 26, 2018 and sell it today you would earn a total of  176,240  from holding Bovespa or generate 2.06% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between ATX and Bovespa


Time Period1 Month [change]
ValuesDaily Returns


Significant diversification

Overlapping area represents the amount of risk that can be diversified away by holding ATX and Bovespa in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bovespa and ATX 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 ATX are associated (or correlated) with Bovespa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bovespa has no effect on the direction of ATX i.e. ATX and Bovespa go up and down completely randomly.

Comparative Volatility

 Predicted Return Density