Correlation Analysis Between IBEX 35 and EURONEXT BEL-20

This module allows you to analyze existing cross correlation between IBEX 35 and EURONEXT BEL-20. You can compare the effects of market volatilities on IBEX 35 and EURONEXT BEL-20 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 EURONEXT BEL-20. See also your portfolio center. Please also check ongoing floating volatility patterns of IBEX 35 and EURONEXT BEL-20.
Horizon     30 Days    Login   to change
Symbolsvs
Compare Efficiency

Comparative Performance

 Predicted Return Density 
      Returns 

IBEX 35  vs.  EURONEXT BEL-20

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, IBEX 35 is expected to generate 1.74 times less return on investment than EURONEXT BEL-20. But when comparing it to its historical volatility, IBEX 35 is 1.04 times less risky than EURONEXT BEL-20. It trades about 0.1 of its potential returns per unit of risk. EURONEXT BEL-20 is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  332,684  in EURONEXT BEL-20 on January 18, 2019 and sell it today you would earn a total of  24,114  from holding EURONEXT BEL-20 or generate 7.25% return on investment over 30 days.

Pair Corralation between IBEX 35 and EURONEXT BEL-20

0.95
Time Period2 Months [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for IBEX 35 and EURONEXT BEL-20

IBEX 35 diversification synergy

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding IBEX 35 and EURONEXT BEL-20 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on EURONEXT BEL-20 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 EURONEXT BEL-20. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EURONEXT BEL-20 has no effect on the direction of IBEX 35 i.e. IBEX 35 and EURONEXT BEL-20 go up and down completely randomly.
    Optimize

Thematic Opportunities

Explore Investment Opportunities

Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.
Explore Thematic Ideas
Explore Investing Ideas  
See also your portfolio center. Please also try Money Managers module to screen money managers from public funds and etfs managed around the world.


 
Search macroaxis.com