This module allows you to analyze existing cross correlation between AEX Amsterdam and NYSE. You can compare the effects of market volatilities on AEX Amsterdam and NYSE 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 NYSE. See also your portfolio center. Please also check ongoing floating volatility patterns of AEX Amsterdam and NYSE.
|Horizon||30 Days Login to change|
Predicted Return Density
AEX Amsterdam vs. NYSE
Given the investment horizon of 30 days, AEX Amsterdam is expected to generate 6.33 times more return on investment than NYSE. However, AEX Amsterdam is 6.33 times more volatile than NYSE. It trades about 0.04 of its potential returns per unit of risk. NYSE is currently generating about -0.01 per unit of risk. If you would invest 83,266 in AEX Amsterdam on September 22, 2019 and sell it today you would earn a total of 2,791 from holding AEX Amsterdam or generate 3.35% return on investment over 30 days.
Pair Corralation between AEX Amsterdam and NYSE
|Time Period||3 Months [change]|
Diversification Opportunities for AEX Amsterdam and NYSE
Overlapping area represents the amount of risk that can be diversified away by holding AEX Amsterdam and NYSE in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NYSE 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 NYSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE has no effect on the direction of AEX Amsterdam i.e. AEX Amsterdam and NYSE go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.