Pair Correlation Between FTSE 100 and Israel Index

This module allows you to analyze existing cross correlation between FTSE 100 and Israel Index. You can compare the effects of market volatilities on FTSE 100 and Israel Index 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 FTSE 100 with a short position of Israel Index. See also your portfolio center. Please also check ongoing floating volatility patterns of FTSE 100 and Israel Index.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 FTSE 100  vs   Israel Index
 Performance (%) 
      Timeline 

Pair Volatility

If you would invest (100)  in FTSE 100 on October 21, 2017 and sell it today you would earn a total of  100  from holding FTSE 100 or generate -100.0% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between FTSE 100 and Israel Index
-0.46

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthVery Weak
Accuracy0.0%
ValuesDaily Returns

Diversification

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding FTSE 100 and Israel Index in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Israel Index and FTSE 100 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 FTSE 100 are associated (or correlated) with Israel Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Israel Index has no effect on the direction of FTSE 100 i.e. FTSE 100 and Israel Index go up and down completely randomly.
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Comparative Volatility

 Predicted Return Density 
      Returns