Correlation Analysis Between Bovespa and All Ords

This module allows you to analyze existing cross correlation between Bovespa and All Ords. You can compare the effects of market volatilities on Bovespa and All Ords 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 Bovespa with a short position of All Ords. See also your portfolio center. Please also check ongoing floating volatility patterns of Bovespa and All Ords.
Horizon     30 Days    Login   to change
Compare Efficiency

Comparative Performance

 Predicted Return Density 

Bovespa  vs.  All Ords

 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, Bovespa is expected to generate 1.85 times more return on investment than All Ords. However, Bovespa is 1.85 times more volatile than All Ords. It trades about 0.3 of its potential returns per unit of risk. All Ords is currently generating about 0.5 per unit of risk. If you would invest  8,569,716  in Bovespa on January 21, 2019 and sell it today you would earn a total of  1,178,390  from holding Bovespa or generate 13.75% return on investment over 30 days.

Pair Corralation between Bovespa and All Ords

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for Bovespa and All Ords

Bovespa diversification synergy

Poor diversification

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

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