This module allows you to analyze existing cross correlation between IBEX 35 and Bursa Malaysia. You can compare the effects of market volatilities on IBEX 35 and Bursa Malaysia 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 Bursa Malaysia. See also your portfolio center. Please also check ongoing floating volatility patterns of IBEX 35 and Bursa Malaysia.
|Horizon||30 Days Login to change|
Predicted Return Density
IBEX 35 vs. Bursa Malaysia
Assuming 30 trading days horizon, IBEX 35 is expected to generate 2.6 times more return on investment than Bursa Malaysia. However, IBEX 35 is 2.6 times more volatile than Bursa Malaysia. It trades about 0.03 of its potential returns per unit of risk. Bursa Malaysia is currently generating about -0.18 per unit of risk. If you would invest 916,350 in IBEX 35 on September 18, 2019 and sell it today you would earn a total of 15,610 from holding IBEX 35 or generate 1.7% return on investment over 30 days.
Pair Corralation between IBEX 35 and Bursa Malaysia
|Time Period||3 Months [change]|
Diversification Opportunities for IBEX 35 and Bursa Malaysia
Very good diversification
Overlapping area represents the amount of risk that can be diversified away by holding IBEX 35 and Bursa Malaysia in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bursa Malaysia 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 Bursa Malaysia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bursa Malaysia has no effect on the direction of IBEX 35 i.e. IBEX 35 and Bursa Malaysia go up and down completely randomly.
See also your portfolio center. Please also try Chance of Distress module to get analysis of equity chance of financial distress in the next 2 years.