Pair Correlation Between AEX Amsterdam and OSE All

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

Pair Volatility

Given the investment horizon of 30 days, AEX Amsterdam is expected to generate 39.65 times more return on investment than OSE All. However, AEX Amsterdam is 39.65 times more volatile than OSE All. It trades about 0.08 of its potential returns per unit of risk. OSE All is currently generating about 0.41 per unit of risk. If you would invest  54,860  in AEX Amsterdam on December 23, 2017 and sell it today you would earn a total of  2,070  from holding AEX Amsterdam or generate 3.77% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between AEX Amsterdam and OSE All
0.44

Parameters

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

Diversification

Very weak diversification

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

 Predicted Return Density 
      Returns