Correlation Analysis Between AEX Amsterdam and DAX

This module allows you to analyze existing cross correlation between AEX Amsterdam and DAX. You can compare the effects of market volatilities on AEX Amsterdam and DAX 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 AEX Amsterdam with a short position of DAX. See also your portfolio center. Please also check ongoing floating volatility patterns of AEX Amsterdam and DAX.
 Time Horizon     30 Days    Login   to change
Symbolsvs

AEX Amsterdam  vs.  DAX

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, AEX Amsterdam is expected to under-perform the DAX. In addition to that, AEX Amsterdam is 4.75 times more volatile than DAX. It trades about -0.18 of its total potential returns per unit of risk. DAX is currently generating about -0.05 per unit of volatility. If you would invest  1,283,411  in DAX on June 17, 2018 and sell it today you would lose (27,309)  from holding DAX or give up 2.13% of portfolio value over 30 days.

Pair Corralation between AEX Amsterdam and DAX

0.79
Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Poor diversification

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

 Predicted Return Density 
      Returns 

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Alphabet
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ExchangeNASDAQ
$1183.86

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See also your portfolio center. Please also try Bollinger Bands module to use bollinger bands indicator to analyze target price for a given investing horizon.