Correlation Analysis Between Madrid Gnrl and IBEX 35

This module allows you to analyze existing cross correlation between Madrid Gnrl and IBEX 35. You can compare the effects of market volatilities on Madrid Gnrl 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 Madrid Gnrl with a short position of IBEX 35. See also your portfolio center. Please also check ongoing floating volatility patterns of Madrid Gnrl and IBEX 35.
Horizon     30 Days    Login   to change
Check Efficiency

Comparative Performance

Madrid Gnrl  vs.  IBEX 35

 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, Madrid Gnrl is expected to generate 1.0 times more return on investment than IBEX 35. However, Madrid Gnrl is 1.0 times less risky than IBEX 35. It trades about -0.12 of its potential returns per unit of risk. IBEX 35 is currently generating about -0.16 per unit of risk. If you would invest  96,026  in Madrid Gnrl on May 20, 2019 and sell it today you would lose (3,364)  from holding Madrid Gnrl or give up 3.5% of portfolio value over 30 days.

Pair Corralation between Madrid Gnrl and IBEX 35

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for Madrid Gnrl and IBEX 35

Madrid Gnrl diversification synergy

Pay attention

Overlapping area represents the amount of risk that can be diversified away by holding Madrid Gnrl and IBEX 35 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on IBEX 35 and Madrid Gnrl 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 Madrid Gnrl 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 Madrid Gnrl i.e. Madrid Gnrl and IBEX 35 go up and down completely randomly.
See also your portfolio center. Please also try Price Ceiling Movement module to calculate and plot price ceiling movement for different equity instruments.