This module allows you to analyze existing cross correlation between Hang Seng and IBEX 35. You can compare the effects of market volatilities on Hang Seng 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 Hang Seng with a short position of IBEX 35. See also your portfolio center. Please also check ongoing floating volatility patterns of Hang Seng and IBEX 35.
|Horizon||30 Days Login to change|
Predicted Return Density
Hang Seng vs. IBEX 35
Given the investment horizon of 30 days, Hang Seng is expected to under-perform the IBEX 35. In addition to that, Hang Seng is 1.37 times more volatile than IBEX 35. It trades about -0.27 of its total potential returns per unit of risk. IBEX 35 is currently generating about -0.14 per unit of volatility. If you would invest 954,980 in IBEX 35 on May 17, 2019 and sell it today you would lose (40,850) from holding IBEX 35 or give up 4.28% of portfolio value over 30 days.
Pair Corralation between Hang Seng and IBEX 35
|Time Period||2 Months [change]|
Diversification Opportunities for Hang Seng and IBEX 35
Overlapping area represents the amount of risk that can be diversified away by holding Hang Seng and IBEX 35 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on IBEX 35 and Hang Seng 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 Hang Seng are associated (or correlated) with IBEX 35. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IBEX 35 has no effect on the direction of Hang Seng i.e. Hang Seng and IBEX 35 go up and down completely randomly.
See also your portfolio center. Please also try ETF Directory module to find actively-traded exchange traded funds (etf) from around the world.