Pair Correlation Between ISEQ and Bovespa

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

Pair Volatility

Assuming 30 trading days horizon, ISEQ is expected to generate 3.67 times less return on investment than Bovespa. But when comparing it to its historical volatility, ISEQ is 1.34 times less risky than Bovespa. It trades about 0.2 of its potential returns per unit of risk. Bovespa is currently generating about 0.55 of returns per unit of risk over similar time horizon. If you would invest  7,518,653  in Bovespa on December 22, 2017 and sell it today you would earn a total of  603,297  from holding Bovespa or generate 8.02% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between ISEQ and Bovespa


Time Period1 Month [change]
ValuesDaily Returns


Poor diversification

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

Comparative Volatility

 Predicted Return Density