Pair Correlation Between CAC 40 and AEX Amsterdam

This module allows you to analyze existing cross correlation between CAC 40 and AEX Amsterdam. You can compare the effects of market volatilities on CAC 40 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 CAC 40 with a short position of AEX Amsterdam. See also your portfolio center. Please also check ongoing floating volatility patterns of CAC 40 and AEX Amsterdam.
 Time Horizon     30 Days    Login   to change
Symbolsvs

CAC 40  vs.  AEX Amsterdam

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, CAC 40 is expected to generate 59.62 times less return on investment than AEX Amsterdam. But when comparing it to its historical volatility, CAC 40 is 28.26 times less risky than AEX Amsterdam. It trades about 0.05 of its potential returns per unit of risk. AEX Amsterdam is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  53,409  in AEX Amsterdam on March 25, 2018 and sell it today you would earn a total of  1,537  from holding AEX Amsterdam or generate 2.88% return on investment over 30 days.

Pair Corralation between CAC 40 and AEX Amsterdam

0.93
Time Period2 Months [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding CAC 40 and AEX Amsterdam in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on AEX Amsterdam and CAC 40 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 CAC 40 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 CAC 40 i.e. CAC 40 and AEX Amsterdam go up and down completely randomly.
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Comparative Volatility

 Predicted Return Density 
      Returns 

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Alphabet
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