Pair Correlation 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.
 Time Horizon     30 Days    Login   to change
 Shanghai  vs   AEX Amsterdam
 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, Shanghai is expected to generate 4.36 times less return on investment than AEX Amsterdam. But when comparing it to its historical volatility, Shanghai is 29.64 times less risky than AEX Amsterdam. It trades about 0.52 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  54,939  in AEX Amsterdam on December 21, 2017 and sell it today you would earn a total of  1,991  from holding AEX Amsterdam or generate 3.62% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Shanghai and AEX Amsterdam


Time Period1 Month [change]
StrengthVery Weak
ValuesDaily Returns


Weak 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.

Comparative Volatility

 Predicted Return Density