- Companies in United States
- Peer Analysis
This module allows you to analyze existing cross correlation between DOW and AEX Amsterdam. You can compare the effects of market volatilities on DOW and AEX Amsterdam 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 DOW with a short position of AEX Amsterdam. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and AEX Amsterdam.
|Horizon||30 Days Login to change|
Predicted Return Density
DOW vs. AEX Amsterdam
Given the investment horizon of 30 days, DOW is expected to under-perform the AEX Amsterdam. In addition to that, DOW is 1.28 times more volatile than AEX Amsterdam. It trades about -0.11 of its total potential returns per unit of risk. AEX Amsterdam is currently generating about -0.08 per unit of volatility. If you would invest 52,618 in AEX Amsterdam on November 16, 2018 and sell it today you would lose (1,965) from holding AEX Amsterdam or give up 3.73% of portfolio value over 30 days.
Pair Corralation between DOW and AEX Amsterdam
|Time Period||2 Months [change]|
Diversification Opportunities for DOW and AEX Amsterdam
Overlapping area represents the amount of risk that can be diversified away by holding DOW and AEX Amsterdam in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on AEX Amsterdam and DOW 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 DOW are associated (or correlated) with AEX Amsterdam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEX Amsterdam has no effect on the direction of DOW i.e. DOW and AEX Amsterdam go up and down completely randomly.