Pair Correlation Between AEX Amsterdam and NQPH

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

Pair Volatility

Given the investment horizon of 30 days, AEX Amsterdam is expected to generate 19.97 times more return on investment than NQPH. However, AEX Amsterdam is 19.97 times more volatile than NQPH. It trades about 0.07 of its potential returns per unit of risk. NQPH is currently generating about 0.29 per unit of risk. If you would invest  55,329  in AEX Amsterdam on December 18, 2017 and sell it today you would earn a total of  789  from holding AEX Amsterdam or generate 1.43% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between AEX Amsterdam and NQPH
0.74

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy86.96%
ValuesDaily Returns

Diversification

Poor diversification

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

 Predicted Return Density 
      Returns