Correlation Analysis Between SP 500 and IBEX 35

This module allows you to analyze existing cross correlation between S&P 500 and IBEX 35. You can compare the effects of market volatilities on SP 500 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 SP 500 with a short position of IBEX 35. See also your portfolio center. Please also check ongoing floating volatility patterns of SP 500 and IBEX 35.
Horizon     30 Days    Login   to change
Symbolsvs

S&P 500  vs.  IBEX 35

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, S&P 500 is expected to under-perform the IBEX 35. In addition to that, SP 500 is 1.1 times more volatile than IBEX 35. It trades about -0.04 of its total potential returns per unit of risk. IBEX 35 is currently generating about 0.13 per unit of volatility. If you would invest  879,610  in IBEX 35 on October 14, 2018 and sell it today you would earn a total of  30,230  from holding IBEX 35 or generate 3.44% return on investment over 30 days.

Pair Corralation between SP 500 and IBEX 35

0.71
Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

S&P 500 diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding S&P 500 and IBEX 35 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on IBEX 35 and SP 500 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 S&P 500 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 SP 500 i.e. SP 500 and IBEX 35 go up and down completely randomly.
    Optimize

Comparative Volatility

 Predicted Return Density 
      Returns 

My Equities

My Current Equities and Potential Positions

View AllNext
GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1036.05

Thematic Opportunities

Explore Investment Opportunities

Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.
Explore Thematic Ideas
Explore Investing Ideas  
See also your portfolio center. Please also try Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.


 
Search macroaxis.com