Correlation Analysis Between Israel Index and Bursa Malaysia

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

Comparative Performance

 Predicted Return Density 

Israel Index  vs.  Bursa Malaysia

 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, Israel Index is expected to generate 2.77 times more return on investment than Bursa Malaysia. However, Israel Index is 2.77 times more volatile than Bursa Malaysia. It trades about 0.13 of its potential returns per unit of risk. Bursa Malaysia is currently generating about 0.07 per unit of risk. If you would invest  98,675  in Israel Index on January 20, 2019 and sell it today you would earn a total of  7,034  from holding Israel Index or generate 7.13% return on investment over 30 days.

Pair Corralation between Israel Index and Bursa Malaysia

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for Israel Index and Bursa Malaysia

Israel Index diversification synergy

Poor diversification

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

Thematic Opportunities

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See also your portfolio center. Please also try Price Ceiling Movement module to calculate and plot price ceiling movement for different equity instruments.