Correlation Analysis Between ISEQ and DOW

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

Comparative Performance

 Predicted Return Density 

ISEQ  vs.  DOW

 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, ISEQ is expected to generate 1.2 times less return on investment than DOW. But when comparing it to its historical volatility, ISEQ is 1.76 times less risky than DOW. It trades about 0.22 of its potential returns per unit of risk. DOW is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  2,332,366  in DOW on January 18, 2019 and sell it today you would earn a total of  255,959  from holding DOW or generate 10.97% return on investment over 30 days.

Pair Corralation between ISEQ and DOW

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for ISEQ and DOW

ISEQ diversification synergy

Poor diversification

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

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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.