This module allows you to analyze existing cross correlation between MerVal and IBEX 35. You can compare the effects of market volatilities on MerVal 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 MerVal with a short position of IBEX 35. See also your portfolio center. Please also check ongoing floating volatility patterns of MerVal and IBEX 35.
|Horizon||30 Days Login to change|
MerVal vs. IBEX 35
If you would invest 3,078,664 in MerVal on May 18, 2019 and sell it today you would earn a total of 970,097 from holding MerVal or generate 31.51% return on investment over 30 days.
Pair Corralation between MerVal and IBEX 35
|Time Period||2 Months [change]|
Diversification Opportunities for MerVal and IBEX 35
Overlapping area represents the amount of risk that can be diversified away by holding MerVal and IBEX 35 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on IBEX 35 and MerVal 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 MerVal 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 MerVal i.e. MerVal and IBEX 35 go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.