This module allows you to analyze existing cross correlation between NZSE and IBEX 35. You can compare the effects of market volatilities on NZSE and IBEX 35 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 NZSE with a short position of IBEX 35. See also your portfolio center. Please also check ongoing floating volatility patterns of NZSE and IBEX 35.
|Time Horizon||30 Days Login to change|
Assuming 30 trading days horizon, NZSE is expected to under-perform the IBEX 35. But the index apears to be less risky and, when comparing its historical volatility, NZSE is 1.25 times less risky than IBEX 35. The index trades about -0.11 of its potential returns per unit of risk. The IBEX 35 is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,016,520 in IBEX 35 on December 23, 2017 and sell it today you would earn a total of 31,430 from holding IBEX 35 or generate 3.09% return on investment over 30 days.