Correlation Analysis Between BSE and IBEX 35

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

BSE  vs.  IBEX 35

 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, BSE is expected to generate 2.18 times less return on investment than IBEX 35. In addition to that, BSE is 1.18 times more volatile than IBEX 35. It trades about 0.01 of its total potential returns per unit of risk. IBEX 35 is currently generating about 0.02 per unit of volatility. If you would invest  907,470  in IBEX 35 on October 17, 2018 and sell it today you would earn a total of  3,600  from holding IBEX 35 or generate 0.4% return on investment over 30 days.

Pair Corralation between BSE and IBEX 35

Time Period1 Month [change]
StrengthVery Weak
ValuesDaily Returns


BSE diversification synergy

Weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding BSE and IBEX 35 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on IBEX 35 and BSE 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 BSE are associated (or correlated) with IBEX 35. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IBEX 35 has no effect on the direction of BSE i.e. BSE and IBEX 35 go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 

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See also your portfolio center. Please also try Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.