Pair Correlation Between IBEX 35 and Shanghai

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

Pair Volatility

Assuming 30 trading days horizon, IBEX 35 is expected to under-perform the Shanghai. In addition to that, IBEX 35 is 1.05 times more volatile than Shanghai. It trades about -0.18 of its total potential returns per unit of risk. Shanghai is currently generating about 0.0 per unit of volatility. If you would invest  326,856  in Shanghai on February 21, 2018 and sell it today you would lose (507.89)  from holding Shanghai or give up 0.16% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between IBEX 35 and Shanghai


Time Period1 Month [change]
ValuesDaily Returns


Poor diversification

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

Comparative Volatility

 Predicted Return Density