Very good diversification
Overlapping area represents the amount of risk that can be diversified away by holding EURONEXT BEL-20 and Russell 2000 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Russell 2000 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 Russell 2000. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Russell 2000 has no effect on the direction of EURONEXT BEL-20 i.e. EURONEXT BEL-20 and Russell 2000 go up and down completely randomly.