Correlation Analysis Between Shanghai and AEX Amsterdam

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

 Predicted Return Density 
      Returns 

Shanghai  vs.  AEX Amsterdam

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Shanghai is expected to generate 0.1 times more return on investment than AEX Amsterdam. However, Shanghai is 9.59 times less risky than AEX Amsterdam. It trades about 0.01 of its potential returns per unit of risk. AEX Amsterdam is currently generating about -0.03 per unit of risk. If you would invest  292,328  in Shanghai on September 21, 2019 and sell it today you would earn a total of  1,634  from holding Shanghai or generate 0.56% return on investment over 30 days.

Pair Corralation between Shanghai and AEX Amsterdam

-0.31
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy87.84%
ValuesDaily Returns

Diversification Opportunities for Shanghai and AEX Amsterdam

Shanghai diversification synergy

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Shanghai and AEX Amsterdam in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on AEX Amsterdam and Shanghai 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 Shanghai 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 Shanghai i.e. Shanghai and AEX Amsterdam go up and down completely randomly.
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See also your portfolio center. Please also try Pattern Recognition module to use different pattern recognition models to time the market across multiple global exchanges.


 
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