Pair Correlation Between ISEQ and AEX Amsterdam

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

Pair Volatility

Assuming 30 trading days horizon, ISEQ is expected to generate 11.96 times less return on investment than AEX Amsterdam. But when comparing it to its historical volatility, ISEQ is 28.54 times less risky than AEX Amsterdam. It trades about 0.19 of its potential returns per unit of risk. AEX Amsterdam is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  54,860  in AEX Amsterdam on December 23, 2017 and sell it today you would earn a total of  2,070  from holding AEX Amsterdam or generate 3.77% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between ISEQ and AEX Amsterdam
0.55

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification

Very weak diversification

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

 Predicted Return Density 
      Returns