Major World Indices Comparison

Objective

The study was undertaken with a view to compare the returns over a period
of time starting from 15th February 2007 to 28th March 2008.

It is also an aim to establish any contrasting comparison thereon.

Procedure

Comparison of Nikkei, Dow Jones, Hang Seng, Sensex

Graphical comparison derived from daily closing figures

Findings

Till 28th March 2008, Indian Sensex has yielded much more return that other
index in comparison.

In absolute terms the returns stand as

Sensex Hang Seng Nikkei Dow Jones
114.04 113.37 71.63 95.70

Base scale on 15th February 2007 was considered as 100.

The maximum returns are as (in absolute terms)

Sensex Hang Seng Nikkei Dow Jones
145.40(1/8/2008) 154.08(30/10/07) 102.03(7/9/07) 110.96(10/9/07)

The minimum returns are as (in absolute terms)

Sensex Hang Seng Nikkei Dow Jones
86.48(3/6/2007) 90.87(3/5/2007) 65.86(3/17/2008) 91.97(3/10/2008)

1. Volatility comparison (Absolute terms)

Sensex Hang Seng Nikkei Dow Jones
58.92 63.21 36.35 18.99

While Sensex and Hang Seng are highly volatile, Nikkei has shown
downwards volatility to a major extent. Dow Jones being moderately or
less volatile compared to these indexes.
Are the FII traitors?
(The discussion continues below the chart)

Index Comparison

150

130

Index Value
110

90

70

50
15 7

21 7

19 7

16 7

17 8
3/ 007

29 7
12 7
26 7
10 7
24 7
6/ 007

7/ 007

8/ 007

30 7
13 7
27 7
/1 0 7

/2 0 7

/2 0 7

31 8
14 8
28 8
13 8
27 8

8
/2 0 7

/8 7

/6 7

1/ 007
3/ 200

6/ 200

7/ 200

8/ 200

1/ 200
3 / /2 0 0
4 / /2 0 0
4 / /2 0 0
5 / /2 0 0
5 / /2 0 0

8 / /2 0 0
9 / /2 0 0
9 / /2 0 0

1 / /2 0 0
2 / /2 0 0
2 / /2 0 0
3 / /2 0 0
3 / /2 0 0
00
1 1 /2 0 0

1 2 /2 0 0
1 0 /2 0

1 1 /2 0

1 2 /2 0
1 0 1 /2 0
/2

/2

/2

/2

/2
2
1/

7/

5/

2/

3/
0/
15

2
2/

Time Frame
Nikkei Hang Seng Dow Jones Sensex

It is well known that Sub Prime concern was a previously known fact in the
US (more than 3 years)
From the graph it is amply clear that as the returns of Dow Jones and
Nikkei dwindled, there is significant contrasting upside movement in
Sensex and Hang Seng.

For the aforesaid period a significant positive correlation is established

between Hang Seng and Sensex.

A type of distrusting positive correlation exists between Nikkei and Dow

Jones.

Copyright @ Anubrata Mullick

Contact Anubrata.Mullick@gmail.com
Phone: 91-9433928220