Pair Correlation Between AEX Amsterdam and NQFI

This module allows you to analyze existing cross correlation between AEX Amsterdam and NQFI. You can compare the effects of market volatilities on AEX Amsterdam and NQFI 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 NQFI. See also your portfolio center. Please also check ongoing floating volatility patterns of AEX Amsterdam and NQFI.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 AEX Amsterdam  vs   NQFI
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, AEX Amsterdam is expected to under-perform the NQFI. In addition to that, AEX Amsterdam is 32.86 times more volatile than NQFI. It trades about -0.05 of its total potential returns per unit of risk. NQFI is currently generating about 0.01 per unit of volatility. If you would invest  153,432  in NQFI on October 26, 2017 and sell it today you would earn a total of  128  from holding NQFI or generate 0.08% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between AEX Amsterdam and NQFI
0.34

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification

Weak diversification

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

 Predicted Return Density 
      Returns