Thursday 9 August 2007

How Closely Does my Portfolio track the All Ordinaries Index?

The graph below shows how well my portfolio of around 30 Australian stocks has tracked the All Ordinaries Index since 1 June 2007. As you can see there is fairly strong correlation between my portfolio and the Index (red and blue lines respectively). The chart also shows the effect of gearing (via margin loans) to amplify gains and losses (green line).

Copyright Enough Wealth 2007

1 comment:

Anonymous said...

When you people talk that hedge funds take their money out..but actually they are using this crash as an opportunity to buy the stocks cheap…

France’s biggest bank BNP Paribas, which has triggered a sharp plunge in the Indian and other global equity markets in the past two days, on Friday purchased shares worth Rs 20.46 crore in a single company here in India. BNP Paribas Arbitrage, a foreign fund promoted by the French banking giant, acquired 1.65 lakh equity shares in Northgate Technologies at Rs 1,240 per share in a bulk deal at the Bombay Stock Exchange. The BSE sensex have witnessed a plunge of 440 points in the past two days, while the stock markets in the US and Europe have also seen sharp decline in the two days, primarily on fresh sub-prime concerns triggered by BNP Paribas’ move on Thursday to suspend withdrawals from three mutual funds. It has freezed withdrawals from three of its mutual funds with assets worth $2.2 billion due to their exposure to the US subprime market.

Here is the link for the full article

We investors need to be cautious now…