Correlation Analysis Between SP 500 and ISEQ

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

Comparative Performance

 Predicted Return Density 

S&P 500  vs.  ISEQ

 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, S&P 500 is expected to generate 0.98 times more return on investment than ISEQ. However, S&P 500 is 1.02 times less risky than ISEQ. It trades about -0.1 of its potential returns per unit of risk. ISEQ is currently generating about -0.15 per unit of risk. If you would invest  276,713  in S&P 500 on November 14, 2018 and sell it today you would lose (16,718)  from holding S&P 500 or give up 6.04% of portfolio value over 30 days.

Pair Corralation between SP 500 and ISEQ

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for SP 500 and ISEQ

S&P 500 diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding S&P 500 and ISEQ in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on ISEQ 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 ISEQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ISEQ has no effect on the direction of SP 500 i.e. SP 500 and ISEQ go up and down completely randomly.

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See also your portfolio center. Please also try Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.