Pair Correlation Between IBEX 35 and SP 500

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

Pair Volatility

Assuming 30 trading days horizon, IBEX 35 is expected to generate 1.17 times less return on investment than SP 500. In addition to that, IBEX 35 is 1.7 times more volatile than S&P 500. It trades about 0.21 of its total potential returns per unit of risk. S&P 500 is currently generating about 0.42 per unit of volatility. If you would invest  269,016  in S&P 500 on December 18, 2017 and sell it today you would earn a total of  8,626  from holding S&P 500 or generate 3.21% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between IBEX 35 and SP 500


Time Period1 Month [change]
ValuesDaily Returns


Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding IBEX 35 and S&P 500 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on SP 500 and IBEX 35 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 IBEX 35 are associated (or correlated) with SP 500. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SP 500 has no effect on the direction of IBEX 35 i.e. IBEX 35 and SP 500 go up and down completely randomly.

Comparative Volatility

 Predicted Return Density