Correlation Analysis Between EURONEXT BEL-20 and IPC

This module allows you to analyze existing cross correlation between EURONEXT BEL-20 and IPC. You can compare the effects of market volatilities on EURONEXT BEL-20 and IPC 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 EURONEXT BEL-20 with a short position of IPC. See also your portfolio center. Please also check ongoing floating volatility patterns of EURONEXT BEL-20 and IPC.
Horizon     30 Days    Login   to change
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Comparative Performance

 Predicted Return Density 
      Returns 

EURONEXT BEL-20  vs.  IPC

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, EURONEXT BEL-20 is expected to generate 1.8 times less return on investment than IPC. In addition to that, EURONEXT BEL-20 is 1.35 times more volatile than IPC. It trades about 0.03 of its total potential returns per unit of risk. IPC is currently generating about 0.08 per unit of volatility. If you would invest  4,120,932  in IPC on September 19, 2019 and sell it today you would earn a total of  196,931  from holding IPC or generate 4.78% return on investment over 30 days.

Pair Corralation between EURONEXT BEL-20 and IPC

-0.28
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy94.29%
ValuesDaily Returns

Diversification Opportunities for EURONEXT BEL-20 and IPC

EURONEXT BEL-20 diversification synergy

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding EURONEXT BEL-20 and IPC in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on IPC and EURONEXT BEL-20 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 EURONEXT BEL-20 are associated (or correlated) with IPC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IPC has no effect on the direction of EURONEXT BEL-20 i.e. EURONEXT BEL-20 and IPC go up and down completely randomly.
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