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.
Investment 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 under-perform the OSE All. In addition to that, AEX Amsterdam is 10.94 times more volatile than OSE All. It trades about -0.22 of its total potential returns per unit of risk. OSE All is currently generating about 0.08 per unit of volatility. If you would invest  87,143  in OSE All on October 21, 2017 and sell it today you would earn a total of  1,042  from holding OSE All or generate 1.2% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between AEX Amsterdam and OSE All
-0.57

Parameters

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

Diversification

Excellent 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