Determining the Value of Mortgage-Backed Securities & the Value of Ftse 100 Shares Price Index: An Interrelationship in September 2013 Prices

Abstract

This chapter highlights a simple statistical correlation analysis that depends on qualitative and quantitative analysis to control for other interrelated variables. The conclusion follows the statistical analysis. The FTSE 100 shares price index includes the most highly capitalized UK companies listed on the London Stock Exchange. This analytical work examines the relationship between the value of these assets and the value of the FTSE 100 share price index using data and prices for mortgage-backed securities as of September 2013. A highly significant positive correlation between the value of the top constituent trades with the MBS in the UK and the value of FTSE 100 was found according to the proposed analysis in this analytical piece.